New Horizon Aircraft Ltd. — Form 10-Q Summary
Reporting period: Three months ended August 31, 2026, the company’s fiscal 2027 first quarter. Financial statement amounts are in thousands of Canadian dollars unless noted otherwise. The company is developing the hybrid-electric Cavorite X7 eVTOL aircraft and remains pre-revenue.
Financial performance and position
| Metric | Q1 2027 | Q1 2026 |
|---|---|---|
| Revenue | None | None |
| Research and development expense | $7,429 | $2,719 |
| General and administrative expense | $1,669 | $3,190 |
| Total operating expenses | $9,098 | $5,909 |
| Net loss | $4,071 | $10,903 |
| Basic and diluted loss per share | $0.06 | $0.29 |
| Cash used in operating activities | $7,213 | $2,364 |
At August 31, 2026, cash and cash equivalents were $70,061; current assets were $73,839; total assets were $75,314; current liabilities were $2,446; total liabilities were $7,657; and shareholders’ equity was $67,657. The filing presents no conventional borrowings on the balance sheet; liabilities include $5,204 of warrant liabilities. Operating lease liabilities totaled $53.
Operating cash outflow plus investing outflow of $671 reduced cash by $8,218 during the quarter. Financing activities used $334, including $618 of net ATM proceeds and $955 of share repurchases for tax obligations, partly offset by pre-funded warrant exercise proceeds. No profit margin is meaningful because the company has no revenue.
Changes versus the prior-year quarter
- Operating expenses increased $3,189, chiefly as R&D rose $4,710 on engineering, prototype aircraft, flight software and data-analysis work. G&A fell $1,521, primarily due to lower stock-based compensation.
- Net loss narrowed by $6,832. A $3,820 gain from the change in warrant fair value, compared with a $5,137 expense in the prior-year quarter, materially affected the comparison; the lower reported loss should not be read as a comparable improvement in underlying operating performance.
- Operating cash use increased $4,849, reflecting higher operating costs and working-capital changes. Investing outflow increased to $671, mainly for demonstrator-related tooling, equipment and facilities.
- Cash was $70,061 versus $16,267 at August 31, 2025. The company issued 67.1 million Class A shares by quarter-end, up from 61.8 million at May 31, 2026; pre-funded warrant exercises and other issuances contributed to the increase.
Outlook, risks and other items
- Management expects cash on hand to fund its current operating plan for at least 12 months from when the interim statements were available to be issued, but reports substantial doubt about going concern beyond that period without additional capital. Future financing may be unavailable or on unacceptable terms; the company could need to raise capital or scale back development and certification work.
- Management anticipates commercialization beginning in 2028 or 2029. Significant development, flight testing, manufacturing and certification work remains; commercial operations require regulatory approvals, and timing or achievement is uncertain.
- The company plans to build a full-scale technical demonstrator and expects R&D and administrative costs to rise as hiring and development continue. It is pursuing civilian and military/special-mission markets, but market adoption, competition, production costs and certification remain material uncertainties.
- The company filed a new shelf registration statement on August 28, 2026, permitting up to $50 million USD of future share sales under its sales agreement; no sales under that new shelf occurred in the quarter. It received $618 of net proceeds from ATM sales under the existing program.
- Under the INSAT program, $442 of eligible project-cost reimbursement was recorded as a receivable; $134 was recognized in other income in the quarter. No SR&ED credit was accrued because the amount had not been determined.
- No material legal proceedings, material changes to previously disclosed risk factors, or reportable subsequent events were reported. Management concluded disclosure controls were effective.
Important facts for investors to verify
- Cash runway assumptions, projected spending and financing needs beyond the stated 12-month operating-plan period.
- Demonstrator build, flight-test milestones, certification pathway and the basis for the 2028–2029 commercialization target.
- Expected share dilution from the $50 million USD shelf, outstanding warrants, options and other equity awards.
- Whether grant reimbursements are received as expected and how future grant accounting affects reported results.
- The extent to which reported net-loss improvement reflects warrant fair-value movements rather than operating progress.