Red Cat Holdings, Inc. · NASDAQ:RCAT
Red Cat — Investor Presentation (April 2021)
18 slides from Red Cat's investor presentation, Apr 13, 2021
Slide 1: The Market's Fastest Growing Segments
~ REDCAT @)SKIPERSONIC FATSHARK ROTOR RIOT © pronezox THE MARKET’S FASTEST GROWING SEGMENTS © 2021 RED CAT HOLDINGS, Alll Rights Reserved
Slide 2: Disclosures
DISCLOSURES During the course of this presentation, we may make statements which are considered “forward-looking statements” within the meaning of the Private Securities Litigation. Reform Act of 1995, including statements regarding our future performance, goals and growth. Forward-looking statement
Slide 3: Highlights
*O) fastest growing market segments in our industry. In 2020, we created RED CAT Drone Services, a dedicated drone services company that combines the capabilities and technologies in our portfolio holdings in one comprehensive solution f HIGHLIGHTS drone products, technologies and services to the Un
Slide 4: RCAT Executive
RCAT EXECUTIVE JEFFREY THOMPSON | Chief Executive Officer and Chairman of the Board is a serial tech entrepreneur with a long track record of founding and leading companies from the startup phase to successful exits and IPOs. His background is in the telecom space, where he founded EdgeNet, a privat
Slide 5: Market Growing and Maturing
AND MATURING The global market for drone technologies passed $100 B in 2020 at annual growth rate of 20.5% (Source: IDC, 2021) Robotics OT (operational technology) services reaching $3.4 billion in 2019, a year over year increase of 13% (Source: Comptia.org , 2021) Drone use in business and civil se
Slide 6: Market Opportunity: Inspection and Survey
MARKET PECT /ices are us' ed to INS surar aims, land a ¥y ihe drones in commercial and civil serv lor SURVEY e ik it, structure c eme INSPECTION VE $21 B MARKET
Slide 7: Market Challenges Created Opportunities
CREATED OPPORTUNITIES CHALLENGES. Operators' flight data collection systems vary greatly, and some do not meet regulatory compliance standards and reporting . Experienced pilots are in high demand but short supply Downlink technologies’ high latency limits accuracy and speed to complete operations.
Slide 8: Strategically-Targeted Acquisitions Provided Us Four Business Lines
Strategically-Targeted Acquisitions Provided Us Four (4) Business Lines with Dedicated Revenue Streams Plus the Software, Technologies, Services and Exposure Needed to Build a Comprehensive Drone Services Company LINES AND VALUE IFATSHARK | ment has been signed, closing expected first half 2021
Slide 9: Drone Technology
DRONE TECHNOLOGY Fat Shark is the premium market share leader of first- person view (FPV) goggles for drones Highly-advanced telemetry, download technologies and firmware produce the lowest latency in the industry : low latency is essential for drone operations Fat Shark headsets are routinely award
Slide 10: Services in GPS-Denied Locations
IN GPS-DENIED LOCATIONS = d -'y i F 1 | } flight services in SEZ GPS-denied, ind igt | available commercial use eee § © SKYCOPTER g pl 1 from Drone service i offered INSPECT THE IMPOSSIBLE ra } ‘FLY ANYWHERE’ S \ TECHNOLOGIES enable rones to inspect and & ANDRONE EROS remote pilots and o internet op
Slide 11: Drone Software & Regulatory Compliance
& REGULATORY COMPLIANCE Red Cat’s DRONE BOX SaaS software and platform enable an easy-to-use flight log system that keeps clients compliant with regulators and helps track critical, drone data collection and feeds to various applications. Patent-pending blockchain-based cloud architecture is Drone-a
Slide 12: Access to Top Pilots
ACCESS TO TOP PILOTS At the center of the high-performance drone market and has the largest following of professional and 107-Certified drone pilots cE i bh i the ready-to-fly drones and drone parts featured in ‘Rotor Riot’s media Drone Racing League events and media A unique mobile game and drone s
Slide 13: RCAT Advantages in Drone Services
RCAT ADVANTAGES IN DRONE SERVICES SUBSIDIARIES’ CAPABILITIES SPECIALIZE Specific capabilities and technologies in each of our subsidiaries contributed to a suite of highly-specialized services in our RED CAT Drone Services division aucineeCAt) GP PRONEBOX «= ROTOR RIOT FAT SIJARK SKYPERSONIC * THE C
Slide 14: Drone Services for Commerce
FOR COMMERCE WHAT WE OFFER 1. Remote, quickly available, experienced and certified pilots to fly drone operations 2. Aplatform to access and process drone data collection and maintain compliance 3. Data for professionals who can recognize and interpret data provided during and after drone inspection
Slide 15: Attractive Valuation Upside vs. Peers
Attractive Valuation Upside vs. Peers 2020 MARKET PRICE/ SALES ‘COMPANY TICKER BUSINESS DESCRIPTION REVENUES CAP RATIO AG Eagle NYSE : UAVS. Drone manufacturing and drone agricultural services $14M $426.8 M 304.9X Alpine 4 OTC: ALPP Techneloates in dossloprnery including rong $34.1 M $496.6 M 175X D
Slide 16: Income and Balance Sheet
INCOME For the Three Months Ended January 31 For the Nine Months Ended January 31 3M 2020 3M 2021 9M 2020 9M 2021 Revenues $34,538 $2,145,988 $34,538 $3,122,077 Gross Margin 18,304 369,723 18,304 T10,924 Operating Loss (438,629) (1,146,853) (976,242) (2,019,988) Other Expense, Primarily Derivative 2
Slide 17: Capitalization
CAPITALIZATION Shares of Common Stock Outstanding’ Series A Preferred Stock? Series B Preferred Stock? Options (WAEP: $1.79) Warrants (WAEP: $1.50) Fully Diluted Shares Outstanding 29,011,926 1,322,004 1,972,402 2,197,475 939,998 35,443,805 1. Shares issued and outstanding as of April 7, 2021 2. 158
Slide 18: Summary
SUMMARY Uniquely positioned to capitalize on the maturing drone market with high performance products, technologies and business services for a variety of industries Acquired businesses that complem and support cach other and sda value to REDCAT one Servic Newly acquired business and technologies pr
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