Red Cat Holdings Inc (RCAT) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Red Cat Holdings fiscal 2024 third-quarter 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 財年第三季財務業績和公司更新電話會議。（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. A webcast replay of the call will be available approximately one hour after the end of the call through June 18, 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。會議結束後約一小時即可觀看此會議的網路重播，直至 2024 年 6 月 18 日。

Joining us today from Red Cat holdings are Jeff Thompson, Chief Executive Officer; and Leah Lunger, Interim Chief Financial Officer.

今天與我們一起出席的還有 Red Cat holdings 的執行長 Jeff Thompson 和臨時財務長 Leah Lunger。

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 other 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 statements in it.

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，可能導致其他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於本次電話會議的 Red Cat 新聞稿，特別是其中的警示性聲明。

The content of this call contains contain time-sensitive information that is accurate as of today, March 18, 2024. 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.

本次通話的內容包含截至 2024 年 3 月 18 日的準確時間敏感資訊。除法律要求外，Red Cat 不承擔任何義務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。

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

現在我很高興將電話轉給執行長傑夫湯普森。傑夫，請繼續。

Thank you. Welcome, everyone, to our fiscal year 2024 third-quarter earnings conference call. I will first review our Q3 performance and recent achievements, after which Leah Lunger will review our financial results. Next, I will provide information about our outlook for the remainder of fiscal year 2024, and then we will take your questions.

謝謝。歡迎大家參加我們 2024 財年第三季財報電話會議。我將首先回顧我們第三季度的業績和近期成就，之後 Leah Lunger 將回顧我們的財務結果。接下來，我將提供有關 2024 財年剩餘時間展望的信息，然後我們將回答您的問題。

I'm pleased to report that our third-quarter results were exceptional and we once again exceeded our guidance by 16%, achieving our best quarter ever and look forward to finishing the year with another record quarter of organic revenue growth. We believe the Teal 2 airframe is becoming a small UAS of choice for the DoD and other federal agencies, as well as over 10 NATO countries. Bringing the Teal 2 drone to market was a significant milestone and the first drone to focus on nighttime operations.

我很高興地報告，我們的第三季業績非常出色，我們再次超出預期 16%，實現了有史以來最好的季度業績，並期待在今年結束時再創有機收入增長的紀錄。我們相信，Teal 2 機身將成為國防部和其他聯邦機構以及 10 多個北約國家的首選小型無人機系統。Teal 2 無人機的上市是一個重要的里程碑，也是第一款專注於夜間作業的無人機。

The Teal 2 was built to dominate the night. With this reliable new airframe and the traction we are getting with customers, software companies felt comfortable integrating onto the Teal 2 airframe. This has allowed us to capitalize on software partnerships that will significantly increase our gross margins. The Teal 2 business model has always been to offer an open-source airframe and to be able to put the software that our customers want on the Teal 2 airframe, similar to an iPhone with the apps.

Teal 2 的誕生是為了主宰夜空。憑藉這款可靠的新機身以及客戶對我們的支持，軟體公司可以輕鬆地將其整合到 Teal 2 機身中。這使我們能夠利用軟體合作夥伴關係來大幅提高我們的毛利率。Teal 2 的商業模式一直是提供開源機身，並且能夠將客戶想要的軟體安裝在 Teal 2 機身上，類似於帶有應用程式的 iPhone。

Let's talk about our current announced software partners. We are integrating Teledyne FLIR's Prism artificial intelligence platform onto our next-generation drone under development for the US Army's short-range reconnaissance, SRR program of record. Teledyne Prism AI. platform provides classification, object detection, and autonomous tracking technology in real time, during both nighttime and daytime operations.

讓我們來談談我們目前宣布的軟體合作夥伴。我們正在將 Teledyne FLIR 的 Prism 人工智慧平台整合到我們正在為美國陸軍的短程偵察、SRR 計劃開發的下一代無人機上。Teledyne Prism AI 平台在夜間和白天操作期間即時提供分類、物件偵測和自主追蹤技術。

We believe customers who purchase this software feature on our drones will increase our gross margins by approximately 25%. We are also integrating radio software features that allow the Teal 2 drone and the next-generation Teal drone to fly in EW environments, or electronic warfare environments. This feature will also increase margins by approximately 20%.

我們相信，在我們的無人機上購買此軟體功能的客戶將使我們的毛利率提高約 25%。我們還整合了無線電軟體功能，使 Teal 2 無人機和新一代 Teal 無人機能夠在 EW 環境或電子戰環境中飛行。此功能還將使利潤率提高約 20%。

We recently announced our partnership with Primordial Labs, which will bring AI-driven voice control technology onto our platform. Primordial Labs' Anura interface will be incorporated into Red Cat's Teal 2 drones and future products where it will enable operators to leverage natural language to command and control autonomous actions for drones and swarms of drones.

我們最近宣布與 Primordial Labs 建立合作夥伴關係，將人工智慧驅動的語音控制技術引入我們的平台。Primordial Labs 的 Anura 介面將被整合到 Red Cat 的 Teal 2 無人機和未來產品中，使操作員能夠利用自然語言來指揮和控制無人機和無人機群的自主行動。

Aero environment, we are fully integrated with Tomahawk Robotics, now part of Aero environment. This enables multi-ship and multi-domain capabilities. This software powers the Teal 2 4-ship swarm product, allowing a single operator to fly four drones simultaneously to surveil targets with 360-degree situational awareness and/or to protect an asset, which followed the asset capabilities and other formations.

Aero 環境，我們與 Tomahawk Robotics 完全集成，現在是 Aero 環境的一部分。這使得多艦和多域能力得以實現。該軟體為 Teal 2 4 機群產品提供動力，允許單一操作員同時駕駛四架無人機，以 360 度態勢感知監視目標和/或保護資產，並追蹤資產能力和其他編隊。

We have also fully integrated with Reveal Technology software that delivers intuitive rapid intelligence at the tactical edge blending state-of-the-art computer vision, artificial intelligence, and edge computing technologies, giving the warfighter real-time 2D maps in near real-time 3D mapping and artificial intelligence insight.

我們還與 Reveal Technology 軟體完全集成，該軟體在戰術邊緣提供直觀的快速情報，融合最先進的計算機視覺、人工智能和邊緣計算技術，為作戰人員提供近乎實時的 3D 地圖和人工智能洞察中的實時 2D 地圖。

We have fully integrated with our partner, Athena AI. They have real-time situational awareness through AI-powered soldier readiness, hands-off world space tracking, detecting and identifying entities seamlessly, tactical insights of all detections designed to operate on soldier-worn AI infrastructure at the tactical edge, advanced visualization of pattern of life, and spatial temporal data. We believe that our gross margins with any purchase of one of these software solutions could be approximately 65%-plus, and if the above customer chooses two or more software features mentioned above, we believe could approach 85% gross margins.

我們已經與合作夥伴 Athena AI 全面整合。他們透過人工智慧驅動的士兵準備、不干涉的世界空間追蹤、無縫檢測和識別實體、旨在在戰術邊緣的士兵佩戴的人工智慧基礎設施上運行的所有檢測的戰術洞察、生活模式的高級視覺化和時空數據實現即時態勢感知。我們相信，購買其中任何一種軟體解決方案，我們的毛利率可能達到約 65% 以上，而如果上述客戶選擇上述兩種或兩種以上的軟體功能，我們相信毛利率可以接近 85%。

In a previous call, I discussed three revenue opportunities driving our growth. They are organic, the Replicator initiative, and SRR program of record.

在之前的電話會議中，我討論了推動我們成長的三個收入機會。它們是有機的、Replicator 計劃和記錄的 SRR 程序。

Let's start with organic revenue growth. We launched the Teal 2 in Q1 2024. Q1 revenue was $1.75 million, a great first quarter for a brand-new drone. Q2 was $3.9 million, 123% sequential quarterly growth. Q3 was $5.85 million, 46% sequential quarterly growth.

讓我們從有機收入成長開始。我們在 2024 年第一季推出了 Teal 2。第一季的收入為 175 萬美元，對於一架全新的無人機來說，這是一個出色的第一季。第二季為 390 萬美元，季增 123%。第三季為 585 萬美元，季增 46%。

We believe that even without any large programs of record such as SRR, we can get to cash flow breakeven as we continue to get market share in the small drone defense category. Traditional feet-on-the-street organic revenue is the most difficult to execute. Our business development team has done a great job. And as they tell me, this will be the year of, quote-unquote, international.

我們相信，即使沒有像 SRR 這樣的大型記錄項目，我們也可以實現現金流收支平衡，因為我們將繼續在小型無人機防禦類別中獲得市場份額。傳統的街頭有機收入是最難實現的。我們的業務開發團隊做得非常出色。正如他們告訴我的，今年將是所謂的國際化之年。

Let's move on to the Replicator initiative. The Replicator initiative is a strategic effort by the United States Department of Defense aimed at countering China's military buildup. Here are the key points about the initiative.

讓我們繼續討論 Replicator 計劃。「複製器」計畫是美國國防部為對抗中國軍事擴張而採取的戰略舉措。以下是該倡議的要點。

The objective, the Replicator initiative seeks to deliver thousands of relatively low-cost, affordable autonomous systems across multiple domains within 18 to 24 months. These systems are designed to help the Pentagon address the growing military capabilities of China.

Replicator 計畫的目標是在 18 到 24 個月內為多個領域提供數千個相對低成本、價格合理的自主系統。這些系統旨在幫助五角大廈應對中國日益增強的軍事能力。

The Replicator initiative has many moving parts, and to outsiders, it may look messy. The DoD and the DIU are trying to move very quickly which is something new to a large bureaucratic process. We applaud their progress.

Replicator 計劃涉及許多活動部分，在局外人看來，它可能看起來很混亂。國防部和國防情報局正在努力快速行動，這對大型官僚程序來說是一件新鮮事。我們對他們的進步表示讚賞。

Our swarm capability in being able to mount an 80-drone portable hive on a ship is unique to Red Cat and Teal. We have stayed connected to the folks at the DoD and the DIU, and we believe our Teal 2 and the new SRR drone are perfect solution for the Replicator commission goals.

我們的蜂群能力能夠在船上安裝一個可容納 80 架無人機的便攜式蜂箱，這是 Red Cat 和 Teal 獨有的。我們一直與國防部和國防情報局的人員保持聯繫，我們相信我們的 Teal 2 和新型 SRR 無人機是實現 Replicator 委員會目標的完美解決方案。

And last but not least, let's talk about the short-range reconnaissance program of record, otherwise known as SRR. But let me start with our newest addition to our Board of Directors. General Funk II has joined, and it's an honor to have General Funk on our Board. And we believe he knows what the warfighter requires.

最後但同樣重要的是，讓我們來談談記錄中的短程偵察計劃，也稱為 SRR。首先讓我介紹一下我們董事會的最新成員。General Funk II 已加入，我們很榮幸能夠讓 General Funk 加入我們的董事會。我們相信他知道戰士需要什麼。

As we mentioned in our press release, small, manned portable unmanned aircraft systems play an increasingly critical role in close reconnaissance to reduce risk and increase lethality to enhance operational success. Just to remind everyone that Red Cat is the only company of the two finalists for SRR that will use lethality to enhance operational success.

正如我們在新聞稿中提到的，小型載人手提無人機系統在近距離偵察中發揮越來越重要的作用，可以降低風險、提高殺傷力，進而提高作戰成功率。只是提醒大家，Red Cat 是 SRR 兩家決賽入圍公司中唯一一家會使用殺傷力來提高作戰成功率的公司。

So the finer winner-take-all selection is expected by September 2024. The contract is for approximately 12,000 drones. The award for the first tranche of production drones two years ago was $100 million for 1,083 drones. The final delivery of prototypes is in May 2024. More on that when we talk Q4 guidance.

因此，預計到 2024 年 9 月將出現更精細的贏家通吃選擇。該合約涉及約 12,000 架無人機。兩年前，第一批生產型無人機的合約金額為 1 億美元，用於生產 1,083 架無人機。原型機的最終交付時間為2024年5月。當我們談論第四季度指引時，我們會對此進行更多討論。

We believe we are well positioned with the first drones designed for nighttime operations, a drone that meets the army's requirements, a drone system that meets the army's cost requirements, a drone that is open source that can be continuously upgraded with third-party features, a brand-new factory that can meet the army's production requests, and a drone that a warfighter would use and with the capabilities to complete their mission goals, which leads to our factory.

我們相信，我們已經做好了充分的準備，擁有第一款專為夜間作戰設計的無人機、滿足軍隊要求的無人機、滿足軍隊成本要求的無人機系統、可以通過第三方功能不斷升級的開源無人機、可以滿足軍隊生產要求的全新工廠，以及作戰人員可以使用並有能力完成任務目標的無人機，這些都通向我們的工廠。

The production facility in Salt Lake City is in full mass production mode. We are now running 1.5 shifts to meet production goals as we continue to invest in facilities, people, and processes. We are now demonstrating that we can build tens of thousands of drones yearly.

鹽湖城的生產設施目前已進入全面量產模式。我們目前正在運行 1.5 個班次來滿足生產目標，同時我們將繼續對設施、人員和流程進行投資。我們現在正在證明，我們每年可以製造數萬架無人機。

And to finish up, let's talk about Q4 guidance. Q4 guidance is approximately $7 million, putting us at almost a $30 million annual run rate. This guidance is also very impressive considering we must switch production to the army prototypes in April to satisfy the SRR final prototype delivery in May. If we meet our Q4 guidance, we will have gone from zero Q2 revenue from a product that did not exist last fiscal year to $18.5 million in the Teal 2's first year.

最後，我們來談談第四季的指導。第四季的指導價約為 700 萬美元，使我們的年運行率接近 3000 萬美元。考慮到我們必須在 4 月將生產轉向陸軍原型以滿足 5 月份 SRR 最終原型的交付，這項指導也非常令人印象深刻。如果我們達到第四季度的預期，那麼上財年第二季度我們因一款尚不存在的產品而獲得的收入將從零增長到 Teal 2 發布第一年的 1850 萬美元。

With that, I will hand the call over to Leah.

說完這些，我就把電話交給 Leah。

Thank you, Jeff. We are thrilled to report record revenues again for the third quarter of fiscal 2024, totaling $5.8 million. This represents growth of more than 250% year over year and 49% on a sequential basis and exceeded our guidance by approximately 16%, as Jeff mentioned.

謝謝你，傑夫。我們很高興地報告 2024 財年第三季的營收再次創下紀錄，總額達 580 萬美元。正如 Jeff 所提到的，這意味著同比增長超過 250%，環比增長 49%，超出我們的預期約 16%。

I want to congratulate our business development and manufacturing teams as we've reached a $20 million annualized run rate this quarter, which is a significant accomplishment. Once again, we have guided to continued growth in our fourth fiscal quarter and remain confident in our long-term revenue outlook.

我要祝賀我們的業務開發和製造團隊，因為我們本季已達到 2000 萬美元的年化運行率，這是一項重大成就。我們再次預測第四財季將持續成長，並對我們的長期收入前景充滿信心。

Gross margin for the third quarter totaled $1.1 million, or approximately 19% of total revenue. On a percentage basis, this represents a year-over-year increase of more than 24% and a sequential decrease of 12%. We anticipate gross margin will steadily improve over time despite fluctuations from quarter to quarter.

第三季毛利總計 110 萬美元，約佔總營收的 19%。以百分比計算，這代表著同比增長超過 24%，環比下降 12%。我們預計，儘管每個季度都會有波動，但毛利率將隨著時間的推移而穩定提高。

This variability occurs for several reasons. First, material and effort required for the short-range reconnaissance contract with the army vary by deliverable. Second, since we have prioritized building quality customer relationships, we've been generous with our warranties, which can cause variations in gross margin as well.

這種變化的發生有幾個原因。首先，與陸軍簽訂的短程偵察合約所需的材料和精力因交付成果而異。其次，由於我們優先考慮建立優質的客戶關係，因此我們對保固非常慷慨，這也會導致毛利率的變化。

Because of this emphasis on customer service, we are able to leverage feedback from real-life product applications in order to iterate and ultimately provide the best possible product. Over time, we anticipate warranty costs to gradually lower relative to other components of cost of goods sold.

由於重視客戶服務，我們能夠利用實際產品應用的回饋進行迭代並最終提供最好的產品。隨著時間的推移，我們預計保固成本相對於銷售成本的其他組成部分將逐漸降低。

Third, this quarter marks the completion of the first full year of manufacturing the Teal 2 drone. During this time, our primary focus has been on growing revenue to capture market share. However, we are also implementing operational efficiencies expected to drive improvements in gross margin, which will be imperative as we work toward cash flow breakeven.

第三，本季標誌著 Teal 2 無人機製造第一年的結束。在此期間，我們的主要重點是增加收入以佔領市場份額。然而，我們也在實施預計會提高毛利率的營運效率，這對於我們努力實現現金流量收支平衡至關重要。

We expect our full-year gross margin to end between 25% and 30%. However, we believe that we can reach gross margins of 50% as production capacity scales exclusive of software add-ons discussed previously by Jeff.

我們預計全年毛利率將在 25% 至 30% 之間。然而，我們相信，隨著生產能力的擴大（不包括 Jeff 之前討論過的軟體附加元件），我們可以達到 50% 的毛利率。

During the third quarter, operating loss totaled $4.4 million and cash used in operations totaled $4.1 million, both of which represent a decrease for the third consecutive quarter. As evidenced by the study improvement, we are committed to controlling costs as we grow revenues and further research and development in anticipation of winning the SRR program of record award.

第三季度，營業虧損總計 440 萬美元，經營現金流量總計 410 萬美元，兩季下降。研究改進表明，我們致力於在增加收入和進一步研發的同時控製成本，以期贏得 SRR 記錄計劃獎。

Our combined cash and accounts receivable balances as of January 31, 2024, totaled over $12.7 million. In December, we completed a capital raise, which has provided operating runway needed to achieve our strategic objectives during calendar 2024.

截至 2024 年 1 月 31 日，我們的現金和應收帳款餘額總計超過 1,270 萬美元。12 月，我們完成了融資，為我們在 2024 年實現策略目標提供了必要的營運基礎。

Last month, we closed the sale of our Consumer segment to Unusual Machines, which included a $1 million cash payment as well as a $2 million interest-bearing note receivable. The completion of this divestiture will enable us to focus even more intently on the success of our enterprise segment.

上個月，我們完成了將消費品部門出售給 Unusual Machines 的交易，其中包括 100 萬美元的現金支付以及 200 萬美元的有息應收票據。此次資產剝離的完成將使我們能夠更加專注於企業部門的成功。

Overall, we remain optimistic about the future of the company. We are pleased to have finalized the latest amendment to our army contract, securing the funding required to complete engineering and deliver prototypes despite funding delays within the DoD. As one of only two finalists in the army short-range reconnaissance Tranche 2 program, we believe we are well positioned to receive an award later this calendar year.

總體而言，我們對公司的未來仍然持樂觀態度。我們很高興完成了軍事合約的最新修訂，儘管國防部內部資金出現延遲，但仍確保了完成工程和交付原型所需的資金。作為陸軍短程偵察第二批計劃僅有的兩名決賽選手之一，我們相信我們有能力在今年稍後獲得獎項。

The Replicator program, which is expected to include over $1 billion budget across several tranches, is focused on fielding thousands of attritable systems, including small UAS. Revenues continue to grow as we expand our customer base domestically as well as internationally. We have now sold our products to customers in over 10 different countries.

複製器計畫預計將分幾批投入超過 10 億美元的預算，重點是部署數千個可消耗系統，包括小型無人機系統。隨著我們在國內和國際上客戶群的擴大，收入持續成長。目前，我們的產品已銷往 10 多個不同國家的客戶。

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) Ashok Kumar, ThinkEquity.

（操作員指示）Ashok Kumar，ThinkEquity。

Thank you. First, congratulations on the operational results and the appointment of the four-star General Paul Funk to your Board. Three questions. First is, can you give us some color on the margins? And do you expect them to increase over the next 12 months?

謝謝。首先，祝賀貴公司取得的經營成果以及任命四星上將保羅·芬克為董事會成員。三個問題。首先，您能為我們提供一些邊緣顏色嗎？您預計未來 12 個月內這一數字會增加嗎？

Second question is you mentioned Replicator. That's b1een a common theme on your last three calls. Can you expand on why you're well positioned for this opportunity?

第二個問題是您提到了 Replicator。這是您最近三次通話中的一個共同主題。您能否詳細說明為什麼您適合這個機會？

And the third, the last question is the international opportunity, you had commented on that in your prepared remarks. When can we expect to get some contract announcements? Thank you.

第三個，也是最後一個問題是國際機遇，您在準備好的發言中已經對此進行了評論。我們什麼時候可以收到一些合約公告？謝謝。

Thanks, Ashok. Well, Leah, your first day, you're getting the first hot question. So I'm going to hand it over to Leah on the margin question.

謝謝，阿肖克。好吧，利亞，第一天，你就遇到了第一個熱門問題。因此，我將把保證金問題交給 Leah。

Sounds good. Thank you, Jeff. So as I mentioned in the call, I do expect margins to improve over the next 12 months. Although we expect there will be some variability by quarter, especially as we complete our engineering effort for the army. But there are a handful of early manufacturing aspects that we're working on. We expect to improve margins. We've had some one-time scrap items, and we're working toward a 1% scrap rate, which would improve margins.

聽起來不錯。謝謝你，傑夫。正如我在電話會議中提到的那樣，我確實預計未來 12 個月利潤率將會提高。儘管我們預計每個季度都會有一些變化，特別是當我們完成為軍隊進行的工程工作時。但我們正在研究一些早期製造的問題。我們期望提高利潤率。我們有一些一次性廢品，我們正在努力將廢品率降至 1%，這將提高利潤率。

We're also working on improving our yields, which would improve margins because of the related labor costs. And as we grow revenues, production volumes naturally increased, which would improve margins as well due to the overhead allocation. Plus, we believe that we'll receive better pricing on materials as we're able to increase our order volumes with increased production volumes.

我們也致力於提高產量，這將透過相關的勞動成本提高利潤率。隨著收入的成長，產量自然也會增加，這也會因為間接費用的分配而提高利潤率。此外，我們相信，隨著生產量的增加，我們的訂單量也會增加，因此我們將獲得更優惠的材料價格。

We've also historically had a very robust warranty program so far that we expect to --

到目前為止，我們一直有一個非常強大的保固計劃，我們預計--

Yeah. Leah, let me jump in on the warranties because you -- I'm the one that's dealing with it mostly. And it kind of upsets Leah when we do this. But just to be very frank, folks, as she mentioned, we have a very generous warranty program. And the reason that we have a generous warranty program at the beginning is we're trying to gain market share on large programs that are converting from our competitors, and lots of the time these programs go on for five years.

是的。利亞，讓我來談談保固事宜，因為你──我才是主要處理此事的人。當我們這樣做時，莉亞有點不高興。但坦白說，正如她所提到的，我們有一個非常慷慨的保固計劃。我們一開始就制定慷慨的保固計畫的原因是，我們試圖從競爭對手那裡獲得大型計畫的市場份額，很多時候這些計畫會持續五年。

So we've made the decision to make sure that these people get their drones fixed immediately if they can't be fixed in the field. And basically, sometimes we get stuff sent back to us, and we find out that it was actually pilot and operator error, not our issue, but we still support the warranty as we're building market share. And it's worked very well.

因此，我們決定確保這些人的無人機在現場無法修復時立即得到修復。基本上，有時我們會收到退回的東西，我們發現這實際上是飛行員和操作員的錯誤，而不是我們的問題，但我們仍然支持保修，因為我們正在建立市場份額。而且效果非常好。

We expect that the warranty generosity is what I'll say, will continue to go down with all the other items that Leah mentioned. And we've also been pretty aggressive with non-recurring engineering for the SRR program, which some of that does seep into GAAP margin. So we have a lot of levers that we'll be pushing over the next couple of quarters to increase our margins and hopefully get to that 50% mark. And then we -- the next thing is we start selling software on top of everything, and that can also increase the margins dramatically.

我們期望保固的慷慨程度會隨著 Leah 提到的所有其他項目而繼續下降，就像我想說的那樣。我們也非常積極地進行 SRR 計畫的非經常性工程，其中一些確實滲透到了 GAAP 利潤中。因此，我們將採取多種措施，在接下來的幾季中提高利潤率，希望達到 50% 的目標。然後我們——下一步就是開始銷售所有產品之上的軟體，這也可以大幅提高利潤率。

And I think your second question was Replicator?

我認為你的第二個問題是複製器？

Yes, yes.

是的，是的。

So yeah, so Replicator, that is -- the problem with Replicator is that no one's going to be making announcements. So it's probably going to frustrate the Street, not only for Red Cat, but other companies that are supplying drones. But we continue to demonstrate products that the DoD and the DIU want. The capabilities, they're big on swarm. And we're the first company with a commercial swarm product called the 4-ship. We came out with that first.

是的，Replicator 的問題在於沒有人會發佈公告。因此，這可能會讓華爾街感到失望，不僅對 Red Cat 來說是這樣，對其他供應無人機的公司也是如此。但我們繼續展示國防部和國防創新部門想要的產品。就其能力而言，它們在群體攻擊方面非常出色。我們是第一家推出名為 4-ship 的商業集群產品的公司。我們首先提出了這一點。

And having that product, and recently with our swarm capability, we demonstrated eight hours of perch and stare using our -- overcoming the small drone battery limitations utilizing our swarm. So the way I believe that we're well positioned is we have swarm capabilities, we have small attritable drone swarms. It's a perfect fit for the Replicator initiative, and I really can't say more than that.

有了該產品，再加上我們最近的群體能力，我們展示了使用我們的群體進行八小時的棲息和凝視——克服了利用我們的群體的小型無人機電池限制。因此，我認為我們處於有利地位，因為我們擁有群體能力，我們擁有可消耗的小型無人機群。它與 Replicator 計劃完美契合，我真的無法再多說什麼了。

And I think your third --

我認為你的第三個--

And the last question is related to the international.

最後一個問題與國際有關。

Yeah. So our biz dev team has been working on more than 10 large RFPs for more than 18 months. And to be frank, a lot of them are larger than SRR. Some of these RFPs are supposed to pop soon and could be our largest contracts yet. So the work we've done over the last year, almost two years on some of these RFPs, are set to be announced winners later this spring.

是的。因此，我們的業務開發團隊已經花了 18 個多月的時間處理了 10 多個大型 RFP。坦白說，其中許多都比 SRR 更大。其中一些 RFP 預計很快就會出台，並可能成為我們迄今為止最大的合約。因此，我們在過去一年（近兩年）中針對其中一些 RFP 所做的工作將於今年春季晚些時候宣布獲勝者。

So we've tested well. The Teal 2 is doing fantastic. And so we do expect to make some announcements later this year for international.

所以我們的測試結果很好。Teal 2 表現非常出色。因此，我們確實希望在今年稍後發布一些國際公告。

Thank you and best wishes to your team.

謝謝您，並向您的團隊致以最良好的祝愿。

Scott Michael.

斯科特·邁克爾。

Thanks for taking my call. Can you hear me? Hello?

謝謝您接聽我的電話。你聽得到我嗎？你好？

We can hear you.

我們能聽到你的聲音。

Oh, thank you. What's the status on the chips, chip production or chip acquisition?

噢，謝謝。晶片、晶片生產或晶片收購的現況如何？

Do you mean as in supply chain?

您指的是供應鏈嗎？

Yes.

是的。

Oh, we've been fine with supply chain for, gosh, over nine months. We are -- yeah, so I mean, supply chain is something that I'm always concerned about, but it's not on my daily thought sheet anymore.

哦，天哪，九個多月以來，我們的供應鏈一直很好。是的，我的意思是，供應鏈是我一直關心的事情，但它不再出現在我的日常思考中了。

Okay. That's good to know. Thank you. You said production is at 1.5 shifts right now. Currently, we have a backlog. Are we able to accommodate the hopeful anticipated awards with the current shifts we have? Or will we have to employ more shifts? How are we looking at in that realm?

好的。知道這一點很好。謝謝。您說現在的生產是 1.5 班次。目前，我們還有一些積壓工作。我們是否能夠透過目前的轉變來滿足人們對獎項的期望？或者我們必須僱用更多班次？我們怎麼看待這個領域？

No, we have plenty of the core chips, I think, is what you're talking about, that we bought almost two years ago, and they were close to 5,000. We are not going to be --

不，我們有很多核心晶片，我想這就是你所說的，我們大約兩年前購買的，有近 5,000 個。我們不會--

No, no, no. I'm sorry, shifts in terms of our production. You have 1.5 shifts, you said?

不，不，不。很抱歉，我們的生產發生了變化。你說你有 1.5 個班次？

We have 1.5. So basically, we've got 1.5 shifts. We've got -- we started around 9, and we end around 9. So we've just increased our shifts to handle the increased production needs by our customers. But we can expand to a full second shift. We're just not there yet. We're going to adjust our factory capabilities according to our demand.

我們有 1.5 個班次。所以基本上，我們有 1.5 個班次。我們大約 9 點開始，也大約 9 點結束。因此，我們增加了輪班次數，以滿足客戶日益增長的生產需求。但我們可以擴展到完整的第二班次。我們只是還沒到達那裡。我們將根據需求調整工廠產能。

Okay. So you anticipate being able to knock out the backlog quickly, is that correct?

好的。所以您預計能夠迅速解決積壓問題，對嗎？

Well, the good news is we have been doing that with these huge increases in revenue every quarter, and we continue to sell more. So we're kind of have the best of both worlds. But we will continue to increase our production to not get the backlog too high and to meet the timeframes that our customers want.

好消息是，我們每季的收入都在大幅增加，而且我們的銷售量還在持續增加。因此，我們算是兩全其美了。但我們將繼續提高產量，以避免積壓過多並滿足客戶所希望的時間範圍。

So if our customers need 90 days, we're going to make sure they get it 90 days. They need it in 120, we'll make sure they get at 120. If they need it in 60, we'll increase production and get it in 60. So we have to adjust to our customers.

因此，如果我們的客戶需要 90 天，我們將確保他們獲得 90 天。他們需要 120 的幫助，我們會確保他們能夠 120 得到幫助。如果他們需要在 60 天內完成，我們就會增加產量並在 60 天內完成。因此我們必須適應我們的客戶。

This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Thompson for pre-submitted questions and closing remarks.

我們的問答環節到此結束。我想將會議交還給傑夫湯普森，讓他回答預先提交的問題並作結束語。

Great. Thank you. Hold on, let me [correct some], there's been more coming in. I'm sorry, they're not in the Chorus Call here. Leah, do you have them?

偉大的。謝謝。稍等一下，讓我[糾正一些]，還有更多內容進來。抱歉，他們不在這裡合唱團。利亞，你有嗎？

Hey, Jeff. (technical difficulty) Would you like me to read the first one?

嘿，傑夫。（技術難題）你想讓我讀第一個嗎？

Yes. The first question is when do you think we could get to profitability? What revenue or what margin or combination?

是的。第一個問題是，您認為我們什麼時候才能獲利？收入、利潤或組合是多少？

Okay, great. Well, Leah, you're going to keep being in the hot seat today. I'll hand that one to you.

好的，太好了。好吧，利亞，今天你將繼續處於困境之中。我會把那個交給你。

Great. Yeah. So based on our current quarterly operating expenses of about $5.5 million, if we reach 50% gross margins as we hope to, then we we'd expect to reach profitability at approximately $11 million in quarterly revenue.

偉大的。是的。因此，基於我們目前約 550 萬美元的季度營運費用，如果我們希望達到 50% 的毛利率，那麼我們預計季度收入將達到約 1,100 萬美元的獲利水準。

Okay. The next is you've mentioned several partnerships. Do you expect to continue to look at acquisitions?

好的。接下來您提到了幾個合作關係。您是否希望繼續關注收購？

Yeah, that's another good question, and we get asked that quite a bit. As you see, we've done a lot of partnerships. In the past, you've seen us do partnerships and then you do acquisitions. But right now, we are fine with partnering with a lot of our software friends. We would definitely not do acquisitions down here, where it would be so dilutive, but we are continuing to build relationships with all of our partners.

是的，這是另一個好問題，我們經常被問到這個問題。正如您所見，我們已經建立了許多合作夥伴關係。過去，您看到我們建立合作夥伴關係，然後您進行收購。但目前，我們很樂意與許多軟體朋友合作。我們絕對不會在這裡進行收購，因為這會稀釋我們的股權，但我們會繼續與所有合作夥伴建立關係。

And we think maybe next year, we start looking at acquisitions again. But right now, our revenue is growing so rapidly and we're right on the cusp of getting some basically game-changing large contracts. So we're going to stay focused on making the Teal 2 great and then when we finalized the SRR, the next-generation bird, which will be the new SRR bird. So we're going to hold tight for a little bit.

我們認為也許明年我們會再次開始考慮收購。但目前，我們的收入成長如此之快，我們即將獲得一些能夠改變遊戲規則的大合約。因此，我們將繼續專注於讓 Teal 2 變得更好，然後當我們最終確定 SRR 時，下一代鳥，也就是新的 SRR 鳥。所以我們會堅持一會兒。

Your final question is, now that you've closed the sale to Unusual Machines, does this mean you will not be going back to the market?

您的最後一個問題是，既然您已經完成了對 Unusual Machines 的出售，這是否意味著您將不會重返市場？

Now that's a great question. That's a new one. So yeah, actually, I'll let Leah review some of that, and then I'll give some final comments after that.

這是一個很好的問題。這是一個新的。是的，實際上，我會讓 Leah 審查其中的一些內容，然後我會給出一些最後的評論。

Yes, for sure. So the sale to Unusual Machines, as I mentioned previously, we received a $1 million cash payment after the closing of the sale, as well as a $2 million note payable to Red Cat. The note is interest-bearing at 8% and the interest is payable monthly in cash, with the principal payment due in full on the maturity date after 2.5 years. However, if UMAC completes an offering of over $5 million, the note becomes payable in full, which would be just another good opportunity for funding for us.

是的，當然。因此，正如我之前提到的，在向 Unusual Machines 出售後，我們收到了 100 萬美元的現金付款，以及一張支付給 Red Cat 的 200 萬美元的票據。該票據的利率為 8%，利息以現金每月支付，本金於 2.5 年後到期日全額支付。然而，如果 UMAC 完成超過 500 萬美元的發行，該票據將全額支付，這對我們來說將是另一個良好的融資機會。

And we are working on finalizing the closing working capital. Usually, with these types of deals that we have, we expect to complete that within six to nine months of the closing date. And the closing working capital, which we currently expect to be around $3 million, will be either payable in cash or added to the note, and that determination is up to Red Cat.

我們正在努力確定最終營運資金。通常，對於我們達成的此類交易，我們預計在交易結束後六到九個月內完成。我們目前預計的期末營運資金約為 300 萬美元，將以現金支付或添加到票據中，具體決定權由 Red Cat 決定。

Jeff, do you want to comment on the stock that we own in UMAC?

傑夫，你想對我們在 UMAC 持有的股票發表評論嗎？

Yeah. We also own 4.25 million shares. We are probably going to do some sort of a dividend. We haven't made that decision yet as a Board to existing Red Cat shareholders. But any other remaining shares that we keep, we would never sell and hurt UMAC stock. But if they had a block buyer or things of that nature, there's ways for us to continue to raise non-dilutive money.

是的。我們還擁有 425 萬股。我們可能會進行某種形式的分紅。身為董事會，我們尚未向現有 Red Cat 股東做出此決定。但我們絕不會出售我們保留的任何其他剩餘股份，以免損害 UMAC 的股價。但如果他們有大宗買家或類似的東西，我們就有辦法繼續籌集非稀釋性資金。

So as you can see with the revenue ramp, and we've started to proven that we've beat guidance three times in a row now, with our revenue ramp and our costs continuing to come down, we believe that we're not going back to the market at all. And to be very frank, if we get an SRR award or Replicator award, all of those give you a chunk of money upfront. So our thought process and our modeling is we are out of the market. So we're pretty excited about that.

因此，正如您所看到的收入成長，我們已經開始證明我們已經連續三次超過預期，隨著我們的收入成長和成本持續下降，我們相信我們根本不會回到市場。坦白說，如果我們獲得 SRR 獎或 Replicator 獎，所有這些都會預先給你一大筆錢。因此，我們的思維過程和模型顯示我們已經脫離了市場。所以我們對此感到非常興奮。

That does concludes our question-and-answer session. I would like to turn it back over to Jeff Thompson for any closing remarks.

我們的問答環節到此結束。我想將發言權交還給傑夫湯普森 (Jeff Thompson)，請他做最後發言。

Great. Thanks, Dave. Well, thanks to everybody. We have mentioned, we believe that we are in a great position to supply drones to the United States military, and we are proud and honored to have them as a customer. We are also ready and willing to help our allies and expect to start getting traction in NATO soon.

偉大的。謝謝，戴夫。好吧，謝謝大家。我們曾提到，我們相信我們有能力向美國軍方供應無人機，我們很自豪也很榮幸能成為他們的客戶。我們也準備好並願意幫助我們的盟友，並期望很快在北約中獲得支持。

Teal drones are incredible tools that give asymmetric capabilities to the warfighter. Our full stack technology, including what's being developed for SRR, enables data link resilience in EW environments, GPS-denied navigation using visual-based navigation, battlefield decision-making with artificial intelligence, natural language operation with AI, object detection and recognition with AI, and will ultimately be able to deliver kinetic effects with human assist to fully close the kill chain.

藍綠色無人機是一種不可思議的工具，它能為作戰人員提供不對稱作戰能力。我們的全端技術（包括正在為 SRR 開發的技術）可實現電子戰環境中的資料鏈路彈性、使用基於視覺的導航進行 GPS 拒絕導航、使用人工智慧進行戰場決策、使用人工智慧進行自然語言操作、使用人工智慧進行物體檢測和識別，並最終能夠在人類協助下產生動能效應，以完全關閉殺傷鏈。

Small drones have changed warfare forever. The Ukraine has demonstrated what small drones can do to expensive military assets. The Wall Street Journal's recent headline reads, drone swarms are about to change the balance of military power, basically describing what Teal drones has developed. The second half of calendar 2024 is going to be pivotal for Red Cat, and we are set up for success.

小型無人機永遠改變了戰爭。烏克蘭已經證明了小型無人機對昂貴軍事資產的力量。《華爾街日報》最近的頭條是“無人機群即將改變軍事力量平衡”，基本上描述了 Teal 無人機的發展。2024 年下半年對於 Red Cat 來說至關重要，我們已經為成功做好了準備。

Thanks again, and good night.

再次感謝，晚安。

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。