New Horizon Aircraft Ltd (HOVR) reported QQ3 2024 results with no revenue disclosed and a negative operating income of $3.554 million, producing a net loss of $4.943 million and an EPS of -$0.17. The quarter followed a markedly different QQ2 2024, which featured a substantial one-time gain from total other income/expenses of $22.94 million, resulting in a net income of $19.66 million for that earlier quarter. The QQ3 results highlight the company’s ongoing pre-revenue status as it advances its hybrid-electric eVTOL program, with operating losses driven by development and G&A spending rather than commercial sales. Despite the profitability swing QoQ, the company maintains strong liquidity, underscored by a cash balance of $9.20 million and a net cash position (net debt of −$9.16 million) driven by financing activity and equity issuance.
From a cash-flow perspective, QQ3 2024 cash from operations was negative at $2.62 million, reflecting working capital dynamics and ongoing operating expenditures, while investing cash outflows were modest at $0.09 million. Financing activity contributed $11.02 million, including stock-issuance proceeds of $2.09 million and other financing activities totaling $8.94 million, driving a net increase in cash of $8.31 million for the period. The balance sheet shows total assets of $10.33 million with negligible debt ($0.035 million total debt) and total stockholders’ equity of about $6.997 million, reinforcing a favorable liquidity position for continuing R&D and prototype development.
Looking ahead, the near-term trajectory remains closely tied to development milestones for the Cavorite X7 program and potential strategic partnerships or government/defense opportunities. The QQ3 2024 results suggest that profitability hinges on transitioning from development-phase expenditures to productization and demonstration milestones, followed by revenue generation. Investors should monitor product milestones, external funding needs, and any qualitative guidance on timelines to revenue realization as management communicates progress with customers, regulators, and potential partners.