New Horizon Aircraft Ltd (HOVRW) reported a revenue-neutral QQ1 2024 with a pronounced burn on R&D and G&A expenses, delivering an EBITDA of -1.265 million CAD and a net loss of -5.306 million CAD. The company continues to invest in its hybrid-electric Cavorite X7 eVTOL program, a hallmark of its long-horizon technology strategy, while operating cash flow remained negative (-1.475 million CAD) for the quarter. Financing activity provided a CAD 3.481 million net inflow, contributing to a CAD 2.006 million increase in cash for the period and leaving CAD 3.822 million in cash at quarter-end. The balance sheet shows total assets of CAD 6.818 million against CAD 22.960 million of liabilities, yielding negative stockholders’ equity of CAD -16.142 million and a sizable non-current liability of CAD 20.622 million, underscoring a significant funding and risk posture typical of pre-revenue aerospace ventures. An enterprise value multiple of 3.42x, in the absence of revenue, suggests the market is pricing potential future value, contingent on capital-raising success and tangible progress toward prototypes, pilots, or strategic partnerships. Near-term performance remains highly contingent on securing additional capital and advancing the X7 program toward commercialization milestones. Investors should monitor cash runway, capital-raising cadence, prototype milestones, and any customer or government support commitments that could de-risk the funding trajectory.
Key Performance Indicators
Operating Income
Decreasing
-1.26M
QoQ: -70.68% | YoY: -330.86%
Net Income
Decreasing
-5.31M
QoQ: -133.79% | YoY: -142.28%
Revenue Trend
Margin Analysis
Financial Highlights
Key QQ1 2024 metrics (CAD, all figures in thousands unless stated):
- Revenue: N/A (no reported revenue in QQ1 2024). In the related quarter-level data, gross-related inputs imply minimal revenue activity in Q1 2024, with gross profit reported as negative where applicable due to cost allocations.
- Gross Profit: -21.9 (Q1 2024 pro forma per quarter data) with a gross margin of -N/A (no revenue). QoQ change: -170.69% (as reported in earnings metrics).
- EBITDA: -1,265.0; EBITDA is a proxy for cash profitability before non-cash items and financing structure adjustments.
- Operating Income: -1,259.0; Operating margin effectively 0% given nil revenue data, but negative due to expense base.
- Net Income: -5,306.0; Net income declined QoQ and YoY (YoY: -142.3%; QoQ: -133.8%), reflecting ongoing R&D/G&A burn without top-line revenue.
- EPS (diluted/GAAP): Not reported for QQ1 2024.
- Operating Cash Flow: -1,475.0; Free Cash Flow: -1,475.0 (negative cash conversion from operations).
- Financing: +3,481.0; Net cash provided by financing activities supported the cash balance.
- Cash and equivalents: CAD 4,415.0 at period end; Cash end balance: CAD 3,822.0 (after other cash movements).
- Balance sheet health: Total assets CAD 6,818.0; Total liabilities CAD 22,960.0; Total stockholders’ equity CAD -16,142.0 (negative equity).
- Liquidity ratios: Current 2.85x; Quick 1.97x; Cash ratio 1.92x; Net debt position: CAD -4,327.0 (net cash). Enterprise value: CAD 3.42x (EV multiple).
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-1.26M
-330.86%
-70.68%
Net Income
-5.31M
-142.28%
-133.79%
Key Financial Ratios
Return on Assets
Weak
-0.78%
Return on assets suggests inefficient capital allocation
Return on Equity
Strong
32.90%
Return on equity demonstrates excellent capital efficiency and value creation
Current Ratio
Strong
2.85
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
-0.01
Debt-to-equity shows conservative leverage and low financial risk
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