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New RR video was “brought to you” by DJI today and featured their osmo action camera (DJI’s version of the GoPro) It’s now listed on RR for $369 (was added about a week ago)
Guess they will offer it to the drone community as a potential upgrade to their fpv system.
https://www.google.com/amp/s/dronedj.com/2020/05/22/dji-scores-win-against-autel-in-latest-patent-dispute-round/amp/
Still ways to go but a nice win for DJI this week.
Too early to tell. Will be interesting to see how it plays out. Other company is Chinese but based in the US. Good news is DJI has money to fight it.
https://www.techradar.com/amp/news/why-dji-probably-wont-get-a-us-drone-ban-after-patent-ruling-setback
Password has been removed from redcatholdings.com
Still under construction but updated their logo (was also shown to us once or twice in webinar)
"The FAA will provide updates when other entities can apply to become qualified Remote ID USS on FAA.gov."
Looks like companies will have a way in. Perhaps we should ask Bruce if Red Cat plans on being next in line to receive such status? I sent him three questions yesterday to pass along, you feel like doing this one?
(would be nice if hit it in the second half of this year with that patent)
Thompson mentioned our competitors before and believes we have a better product than skyward. If anyone wants a glimpse of dronebox - rcatinfo.com has updated it's investors presentation
I thought your summary pretty much covered it. My takeaway is the same as it has been. You either believe them or you don’t. It’s that simple.
You asked a great question about the sales force. The timeline given falls right in line with everything else and seems to point to the second half of this year as a turning point.
Thank you for inquiring about the DJI and RR deal. I was not upset at them choosing to comment on specifics at a later date. Why release any news while there is no interest? Earnings will get this ball moving as I have stated for months. They know what they are doing. With Q1 accounting for just two months of sales, Q2 should top it. Add in Q3 sales from dronebox and we have quarterly growing revenues, this is what investors want to see and Thompson knows this.
They also mentioned how gochain has introduced them to a lot of people and industry leaders. Back in the fall I stated how big of a partnership that was and I still don’t think the average IHUB crony really understands who we’re working with or even understands how the platform/blockchain works.
For those buying right now, the pricing is amazing. This could easily hit a 200 - 400 million market cap IMO. It’s a billion dollar idea, the question is how much money can we raise? and how fast will we gain subscribers/clients?
I went hiking Sunday and at the top of Mt. Major some kid was flying his DJI Mavic. I sat back with a smile on my face and thought about future regulations and the need for dronebox. I think the horizon here is bright.
It’s been that way for months. I think it hasn’t been updated, RR headquarters is in Orlando. I’ve searched for that address before and found nothing. Not concerned at this point though, we seem to be moving in the right direction. They are still pink slip at this point, I’m sure all of that will be updated in the near future.
I am thinking about asking Bruce if they have plans to move the company to Florida or mainland USA at some point? Given the tax breaks in PR it might make sense to stay there for a bit. RR did sign a 3 year lease in Orlando so I know they plan on staying put for a bit. Not sure about RCAT’s plan.
Bloomberg is now showing report coming 5/14 (day before our one year seasoning is complete)
Also twitter handle is now redcatholdings... I went ahead and and tried redcatholdings.com and it is currently password protected...but url gif is 100% red cat’s logo...
The writing is on the wall. Q3 NASDAQ.
@redcatpropware
Still around. Hasn’t been updated since Kapper took over as CMO. I imagine they will roll the new look out soon with the website
What questions are some of you thinking about asking tomorrow?
I want to know more about this “second deal” RR did with DJI and how dronebox is gonna be fully integrated with DJI products...That alone could attract a lot of users. Just a reminder they own 70% of the market.
—————-
Side note/crazy theory, Thompson mentioned being partnered with RR for awhile before merging and mentioned they might be rolling out more partners in the future. Does that mean we will be merging with more partners?Management still owns most of this company...They have shares to give...During another question he went on to explain that we could offer unique solutions and even custom platforms for enterprise fleets.. We can’t do that without gochain...people are wondering why we have so few software engineers on our team? Well maybe we will be merging with gochain? Think about it, they use a governing node system verified by some of the most trusted institutions/businesses with them onboard this really could be a billion dollar idea.
Like I said crazy theory but don’t forget there is a warrant for 60$ a share that expires in Q1 2021.
Learn About Red Cat Holdings Drone Technology in Exclusive Investor Group Call
Tomorrow, April 30th, at 4:05 PM ET
Join Founder and CEO, Jeff Thompson of Red Cat Holdings (OTC: RCAT) for a presentation and live Q and A session on Thursday, April 30th, 2020 at 4:05 pm Eastern.
Call information:
Thurs., April 30th, 2020, 4:05 pm ET
Conference Line: (866) 821-0302** (No Password)
Got the call too. Didn’t pick up but saw he called, got an email for it as well.
Sorry I lied they answered 4 out of 5 questions but gave a hint.
Coming into the webinar I presented Bruce with the following questions -
1. Where does Jeff Thompson see RCAT in 2021 and 2022?
DOESN'T WANT TO GET AHEAD OF HIMSELF BUT WHOLE DRONE INDUSTRY IS PROPELLING FORWARD BECAUSE OF COVID19. RR SUBSCRIBER COUNT IS GROWING, STORE IS GROWING. CAN'T SPEAK OF 2021 NUMBERS BUT SAYS THE SECOND HALF OF 2020 SHOULD BE EXCITING
2. Are we still on track for NASDAQ? Do see us there sometime in Q3?
YES! IF ALL GOES WELL.
“STILL EXPLORING OPTIONS” - Redchip deals with NASDAQ it only makes sense and not the NYSE
3. How has COVID19 affected Rotor riot sales/supply chain?
SALES BETTER THAN EXPECTED, APRIL UP 30% YOY, SUPPLY CHAIN HAD SOME HICCUPS BUT WE ARE MAKING DUE AND CRUSHING IT. CHINA IS UP AND RUNNING, THAT'S GOOD NEWS.
4. When will the product launch?
REALLY SOON!
They also spoke about DJI INTEGRATION, WHICH IS HUGE and how they'll market it to consumers and enterprise.
Also was I the only one that thought Dronebox was very aesthetically appealing?! It looked absolutely great.
5. What Companies are we doing case studies? Any big names?
They didn't answer this in particular but gave a hint at revealing more partners down the road. I think they're holding a big hand and aren't in any hurry.
I'm 100% bullish on RCAT
Follow the money guys, read gets his shares in 2021 if we're at 20 bucks he makes a million. He knew what he was doing. GLTA
I presubmitted 5 questions all of them were addressed more or less with the exception of the product launch date but “really soon” is good enough for me.
I’ll post my write up when I have the chance.
Money counter go brrrrrrrrrr
Q4 is gonna be a banger!
Bloomberg showing report coming 4/30/2020. Was listed as 4/16 earlier this month/last month...Usually they’ve been within a week or two of BB for the most part.
Wouldn’t miss it for the world ;)
I’ve made arrangements at work so I can attend. I’ll be submitting questions to Bruce this weekend. See you longs Tuesday at 4:05!
Also we are clear for uplisting after 5/15 if I remember correctly Sam? Looking forward to the next few months. GLTA
Exactly. It’s not the official rotor riot with 33 k members. It’s just more high school drama within the fpv community. I’m taking a break from the boards. I’ll start posting when RCAT hits 3$. Not selling or anything, just tired of the bullshit.
GLTA / STAY SAFE
Have you tried Bruce at RedChip?
They are still partnered, now you're just stirring the pot.
https://www.dji.com/where-to-buy/online-retails
https://www.rotorriot.com
Also Earnings can't be disappointing because we haven't had any...ever...even if they are below initial estimates, it'll look good on paper.
I have roughy 12% of my portfolio in small cap. I would sincerely hope no one here has all their money tied to one specific stock especially in the OTC. However, if you see a better opportunity elsewhere and want the liquidity - sell.
“The hardest thing to do is sit tight and do nothing.” - Jesse Livermore
It’s encouraging because you can’t really short a stock with no interest. I feel safer here then in the market right now. Volume has picked up since January, remember last year?
Interest will pick up with up list and earnings.
What a massive short today! How will we recover????
Gochain.io website was just updated an hour ago.
Nice to see RCAT listed as a partner with likes of dish network, Lenovo and Microsoft...https://gochain.io/about-us/
I’ll gladly add to my position down here, most people don’t understand blockchain technology and only see it as crypto. There’s a reason every major tech company is getting behind it...IBM, GOOGLE etc.
Don’t let shorties like nickmerk try to fool you, RCAT is positioned for great upside.
Yawn.
The fact that we have revenue coming in for the first time is plenty of hope...we made 34.5 k in the six days reported...The company wanted to show investors we have revs coming in before Q1 earnings hit...RR did 2.6 million in sales last year with an estimated 2020 80 - 100% YOY...RCAT will be just fine and is fair value right here.
Very good article - thanks for posting
On the US front -
https://www.foxnews.com/tech/southern-california-police-use-drones-amid-coronavirus-lockdown
Way more detailed article here - https://www.ft.com/content/c7d0dee1-6125-475c-9cc7-78f4671d7cea
California is using a DJI drones, good time to be partnered with them ;)
Nothing out of the ordinary with DJI products, inventory seems to be going in and out of stock and pre order as it was before. However some batteries and flight controllers seem to have been out of stock longer(only some)...I would also imagine a decrease in some sales due to covid19 however I think our YOY will still be positive even if we don’t hit our 5 million estimate.
It’s funny you ask because I emailed Jeff Thompson some concerns (including this one) friday evening, I’m waiting to hear back. I’ll post any reply I receive.
Patience. The market condition is unfortunate but we’re in a really good position here like it or not with very low debt and a nice earnings report and a hopeful 10k coming mid April. They already outlined that. I wasn’t expecting any noise until late march at the earliest. They pretty much told us the gameplan during the investor meeting Sam was apart of. Not sure what anyone was expecting so early. I do understand your frustrations and I do feel like this can is getting kicked yet again but I actually feel better here than the overall market believe it or not - atleast going into the next quarter.
We need to think in quarters and not day to day(myself included) Could this affect financing? Potentially.
However with our low debt and product being so close to being finished and sold, we don’t really have a lot of expenses or employee’s. We’re way better off than a biotech company that is throwing millions into product development with no sure thing in sight. I think we might even look more attractive to HC wainwright and PIPE funding, people are going to want to find avenue’s for growth in a bear market/recession. We’re expecting a potential 100% 90-100 YOY from rotor riot alone this year, add in our SaaS revenue and our balance sheet will be looking very attractive. It’s way easier to grow a small company(with good financials) then to keep growing a 100 billion dollar company who is now only making 3% YOY and paying off billions in debts. Imagine if their earnings drop and they don’t have enough cash on hand to survive multiple quarters of stale growth?
Once again, I feel your uncertainty and I have to battle my own psyche but we’re not as bad a lot of companies out there. RCATINFO.com stated - Trading volume has increased in recent weeks since the announcement of the Rotor Riot acquisition, yet remains relatively light, creating an opportunity for investors looking to begin building a position in the company before activity and price begin to rise.
- We were already expecting this month to be a build up / accumulation period. Volume looks good. Just hold on til Q2. We’ve made it this far and I’ll be damned to let the market scare me. We’re in this together and I think some might find an exit sooner than later.
Obviously make your own decisions and not based on my DD but I think the near future here is bright. Sometimes you just have to wait for things to get rolling, it sucks but it’s the reality. Guess we’ll just continue to keep each other company and give the occasional pep talk?
Rcatinfo.com has been updated
Good find! I mentioned I saw Drew Camden’s post on the RR Facebook group that would Chad Kapper would be our new CMO a few weeks ago and this supports that.
I don’t think our new CPA can also be an independent director because they also are our “independent outside auditor”, pretty sure that would be conflicting. Self admittedly I like to get ahead of myself sometimes.
However I do imagine those positions will be announced in the next quarter or so.
Somebody with a background in government and regulations and/or risk management would be fitting. I don’t know about you guys but I’m feeling good about red cats future, can’t wait to see our revs for Q1. I’m wondering if the corona virus has affected DJI’s supply chain at all?
I’ve been looking at the rotor riot store everyday for a couple months and DJI’s product are always in and out of stock or pre order and it changes every few days. So clearly there is a demand for this stuff, I’m just wondering if it may have affected sales at all or has slowed it down? I’m not entirely sure because their stock is always changing in and out (good sign) and I honestly can’t tell because it has been moving in and out of stock like this since November. However, we carry a bunch of other products so I’m not that worried, just curious cause I honestly haven’t noticed a different pattern and just curious about our supply chain. I would love to hit a million in revenue and DJI’s pricetag for certain items can be +500$....it adds up.
Thank you for participating as much as possible and for the recap.
Things seem promising and moving in the right direction. With earnings for Q1 hitting in April we should see a nice bump in EPS, which should attract investors. Q2, File uplist with Saas launch, we should also see a nice jump in revenue which again will look great on paper.
I believe it takes 4-6 weeks for a Nasdaq application, so we would probably get listed first week Q3 or Super late Q2, If all things worked out in fairytale land but business circumstances can add a couple weeks to that.
GLTA.
Won’t be able to make the call cause of work but could you ask
6.NASDAQ application timeline, how soon are they planning on uplisting?
I gotcha. Let’s see how this plays out, fingers crossed and GLTA.
I just went back and read the 8k from the 29th
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
The Company intends to file the financial statements of Rotor Riot required by Item 9.01(a) as part of an amendment to this Report no later than 71 calendar days after the required filing date for this Report.
(b) Pro Forma Financial Information.
The Company intends to file the pro forma financial information required by Item 9.01(b) as part of an amendment to this Report no later than 71 days after the required filing date for this Report.
d) Exhibits.
Exhibit No. Description
4.1 Promissory Note, dated January 23, 2020
10.1 Agreement of Merger, dated December 31, 2019
10.2 Amendment No. 1 to Agreement of Merger, dated January 14, 2020
10.3 Amendment No. 2 to Agreement of Merger, dated January 22, 2020
10.4 Make Whole Agreement, dated January 23, 2020
I think that means we’ll see the 14def and financials no later than 71 days after 29th which could push us into Q2’.
Of outside auditing?
I might be misunderstanding all this lawyer jargon BUT I believe the CPA firm could be classified as a independent director chosen by the board or “the committee”
“Independent Directors (as defined in Rule 5605(a)(2)) play an important role in assuring investor confidence. Through the exercise of independent judgment, they act on behalf of investors to maximize shareholder value in the Companies they oversee and guard against conflicts of interest. Requiring that the board be comprised of a majority of Independent Directors empowers such directors to carry out more effectively these responsibilities.”
c) Audit Committee Requirements
(1) Audit Committee Charter
Each Company must certify that it has adopted a formal written audit committee charter and that the audit committee will review and reassess the adequacy of the formal written charter on an annual basis. The charter must specify:
(A) the scope of the audit committee's responsibilities, and how it carries out those responsibilities, including structure, processes and membership requirements;
(B) the audit committee's responsibility for ensuring its receipt from the outside auditors of a formal written statement delineating all relationships between the auditor and the Company, actively engaging in a dialogue with the auditor with respect to any disclosed relationships or services that may impact the objectivity and independence of the auditor and for taking, or recommending that the full board take, appropriate action to oversee the independence of the outside auditor;
(C) the committee's purpose of overseeing the accounting and financial reporting processes of the Company and the audits of the financial statements of the Company; and
(D) the specific audit committee responsibilities and authority set forth in Rule 5605(c)(3).“
The 8k states
Effective as of February 19, 2020, Red Cat Holdings, Inc., a Nevada corporation (the “Company”), engaged BF Borgers PC CPA (“BF Borgers”) as the Company’s independent registered public accounting firm. The engagement of BF Borgers was approved by the Company’s Board of Directors.
The audit committee is the board and they elected an independent CPA firm(anyone know if they can be classified as an independent director? I believe NASDAQ requires a couple, not sure if the cpa firm can account for the spots?) BF Borgers deals with public companies and says they audit 2.2% of the market for smaller companies according to their website. They work with some NASDAQ and NYSE listed companies.
I think they are slowly preparing for take off...
Not entirely sure but I was googling around and found this
“Nasdaq requires that a company make a one-time certification that it has an audit committee charter that satisfies Nasdaq's requirements as set forth in Listing Rule 5605(c)(1), but the company need not submit a copy of the charter to Nasdaq.”
Not sure why it hasn’t popped up on Ihub yet but here is the newest 8k filing for anyone interested
https://www.otcmarkets.com/filing/html?id=13941055&guid=giYCUp_nQE6X73h