New Horizon Aircraft Reports Improved Net Loss and Increased Operating Expenses in Latest 10-Q Filing

New Horizon Aircraft Ltd. has reported significant financial developments in its latest 10-Q filing for the quarter ending February 28, 2025. The company, which specializes in the development of hybrid-electric vertical takeoff and landing (eVTOL) aircraft, recorded a net loss of CAD 4.9 million for the quarter, a slight improvement from a loss of CAD 5.3 million in the same period last year. For the nine months ending February 28, 2025, the company reported a net income of CAD 11.8 million, compared to a loss of CAD 6.5 million in the prior year, largely due to a gain from the termination of a forward purchase agreement.

Total operating expenses for the quarter increased to CAD 3.6 million, up from CAD 1.3 million in the previous year, driven primarily by higher general and administrative costs, which rose to CAD 3.1 million from CAD 1 million. Research and development expenses also increased to CAD 443,000 from CAD 270,000, reflecting the company's ongoing investment in its eVTOL prototype and related technologies. The increase in expenses is attributed to hiring additional staff and professional fees associated with the company's growth initiatives.

In terms of operational metrics, New Horizon Aircraft's total assets increased to CAD 10.3 million as of February 28, 2025, compared to CAD 4.9 million at the end of the previous fiscal year. The company’s cash and cash equivalents rose significantly to CAD 9.2 million from CAD 1.8 million, bolstered by proceeds from the issuance of Class A ordinary shares and preferred shares. The total number of Class A ordinary shares outstanding increased to 31,230,914, up from 18,607,931 as of May 31, 2024, reflecting the company's capital-raising efforts.

Strategically, New Horizon Aircraft has made notable advancements, including the completion of a merger with Robinson Aircraft Ltd. in January 2024, which has positioned the company to leverage Robinson's existing technology and expertise in the aerospace sector. The company is focused on the commercialization of its eVTOL aircraft, with expectations to begin generating revenue by 2028. However, management has expressed concerns regarding the ongoing need for additional capital to support its development plans, indicating that there is substantial doubt about the company's ability to continue as a going concern beyond the next 12 months without further financing.

Looking ahead, New Horizon Aircraft aims to capitalize on the growing market for regional air mobility, although it acknowledges the challenges posed by competition and the need for regulatory approvals. The company is actively pursuing government grants and subsidies to support its research and development efforts, while also exploring additional financing options to ensure it can meet its operational and developmental goals.