New Horizon Aircraft Reports $19.7M Net Income, Merger with Robinson Aircraft Completed

New Horizon Aircraft Ltd. has reported significant financial developments in its latest 10-Q filing for the quarter ending November 30, 2024. The company recorded a net income of $19.7 million for the three months ended November 30, 2024, compared to a net loss of $740,000 for the same period in 2023. This shift in profitability is attributed to a combination of factors, including a substantial gain from the termination of a Forward Purchase Agreement, which contributed $21.4 million to the income statement. Total operating expenses for the quarter increased to $3.3 million, up from $824,000 in the prior year, primarily driven by higher general and administrative costs associated with the company's growth initiatives.

In terms of operational metrics, New Horizon Aircraft's total assets decreased to $1.96 million as of November 30, 2024, down from $4.94 million at the end of the previous fiscal period. The decline in assets is largely due to a reduction in cash and cash equivalents, which fell to $887,000 from $1.82 million. The company’s liabilities also saw a significant decrease, dropping from $22.9 million to $4.3 million, reflecting the impact of the Forward Purchase Agreement's termination and other financial adjustments.

Strategically, New Horizon Aircraft has undergone notable changes, including a merger with Robinson Aircraft Ltd. that was finalized on January 12, 2024. This merger is expected to enhance the company's capabilities in developing its hybrid-electric vertical takeoff and landing (eVTOL) aircraft. The company has also been actively engaging in research and development, with expenses in this area rising to $427,000 for the quarter, compared to $219,000 in the previous year. The increase reflects the company's commitment to advancing its eVTOL prototype, which is currently in the flight-testing phase.

The company reported a significant increase in its employee headcount, which is expected to support its growth and development plans. As of the latest filing, New Horizon Aircraft has issued 31,230,914 Class A ordinary shares, a substantial increase from previous periods, indicating a successful capital raise through equity offerings. The company anticipates that the proceeds from these offerings, along with an $8.4 million investment received in December 2024, will provide sufficient liquidity to fund its operations for at least the next 12 months.

Looking ahead, New Horizon Aircraft remains focused on the commercialization of its eVTOL aircraft, with expectations to begin generating revenue by 2027. However, the company acknowledges the inherent risks associated with the development of the regional air mobility market and the need for ongoing capital to support its ambitious plans. The management has expressed confidence in the company's ability to navigate these challenges, although it remains cautious about the potential need for additional financing in the future.