New Horizon Aircraft (HOVR) Registration Filing summary

Company overview and business model

• Designs and develops hybrid electric eVTOL aircraft for the Regional Air Mobility (RAM) market, targeting both civilian and military applications.

• Flagship product is the Cavorite X7, a 7-seat aircraft capable of vertical takeoff and landing, with a projected range over 500 miles and speed up to 250 mph.

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

• Holds 22 issued and allowed patents, with a focus on proprietary ducted fan-in-wing technology for efficiency and safety.

• Plans to serve medevac, disaster relief, cargo, business travel, and military markets, with initial deliveries targeted for 2027.

Financial performance and metrics

• No commercial revenues to date; company is pre-revenue and focused on R&D and prototype testing.

• Net losses of $1.25M (2023) and $1.74M (2022); accumulated deficit of $13.0M as of February 29, 2024.

• Research and development expenses were $675,758 (2023) and $752,185 (2022); general and administrative expenses increased significantly year-over-year.

• Cash and cash equivalents of $4.4M as of February 29, 2024; expects current capital to fund operations for at least 12 months.

• Recent capital raises include $6.7M in convertible notes and $2M PIPE investment.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for working capital and general corporate purposes.

• Additional funds may be temporarily held as cash or invested in cash equivalents or securities.