New Horizon Aircraft (HOVR) Registration Filing summary

Company overview and business model

• Designs and develops hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility (RAM) market, targeting both civilian and military applications.

• The flagship product, Cavorite X7, is a 7-seat hybrid eVTOL designed for efficient, fast, and versatile regional transport (50–500 miles).

• Business model includes manufacturing, direct sales, and licensing of proprietary fan-in-wing technology to other OEMs.

• Focuses on applications such as medevac, disaster relief, remote resupply, and military missions, with anticipated commercialization in 2027.

• Holds 22 issued and allowed patents, with core IP in ducted fan-in-wing technology and hybrid propulsion.

Financial performance and metrics

• No commercial revenue to date; company is in research, development, and flight-testing phase.

• Reported net loss of CAD 8.16 million for the year ended May 31, 2024, compared to CAD 1.25 million in 2023.

• Operating expenses increased to CAD 4.62 million in 2024, driven by R&D and administrative costs.

• Cash and cash equivalents as of May 31, 2024, were CAD 1.82 million.

• Accumulated deficit of CAD 14.7 million as of May 31, 2024.

• Management expects current capital to fund operations for at least 12 months post-filing, but substantial doubt exists about long-term going concern without additional capital.

Use of proceeds and capital allocation

• Net proceeds of approximately $3.3 million (assuming $0.61 per share) will be used for working capital and general corporate purposes.

• Proceeds may be temporarily held as cash or cash equivalents if not immediately applied.