New Horizon Aircraft Ltd (HOVR) reported a pre-revenue QQ1 2026 quarter characterized by substantial operating spend and a deep net loss, with no revenue disclosed in the period. CAD 5.909 million of operating expenses were recorded (R&D CAD 2.719 million; G&A CAD 3.190 million), producing EBITDA of CAD -10.852 million and a net income of CAD -10.903 million, or -0.29 per share. The company generated negative cash flow from operations (CAD -2.364 million) but augmented liquidity via financing activities totaling CAD 11.223 million, including CAD 8.253 million of common stock issued, yielding a ending cash balance of CAD 16.267 million. While the balance sheet shows a relatively modest asset base and minimal disclosed debt, the equity section reveals ongoing erosion through retained earnings and other stockholders’ equity lines, underscoring the company’s early-stage, high-burn profile in a pre-revenue phase of product development.
Key takeaway: the quarter confirms that material value realization is contingent on successful development milestones and regulatory clearance for the Cavorite X7. The company possesses a meaningful cash runway to fund R&D and potential financing rounds, but execution risk remains extreme in the absence of revenue and a clear path to profitability. Investors should monitor development milestones, potential strategic partnerships, regulatory progress, and supplemental financing needs as primary value drivers over the near term.