Red Cat Holdings, Inc. Stock Compensation Disclosure
| Year ended December 31, 2025 | Eight months ended December 31, 2024 | Year ended April 30, 2024 | |||||||||||||||
| Exercise Price | $6.73 – $11.38 | $1.15 – 4.02 | $0.72 – 1.12 | ||||||||||||||
| Stock price on date of grant | 6.73 – 11.38 | 1.20 – 4.02 | 0.70 – 1.12 | ||||||||||||||
| Risk-free interest rate | 3.69% – 4.44% | 3.54% – 4.44% | 3.46% – 4.41% | ||||||||||||||
| Dividend yield | — | — | — | ||||||||||||||
| Expected term (years) | 5.00 – 6.00 | 5.17 – 5.78 | 5.28 – 8.25 | ||||||||||||||
| Volatility | 135.54% – 191.15% | 190.46% – 199.03% | 206.99% – 262.07% | ||||||||||||||
| Shares (in thousands) | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
| Outstanding as of April 30, 2023 | 4,785 | $ | 1.88 | 8.72 | 75 | ||||||||||||||||||
| Granted | 2,903 | 1.02 | |||||||||||||||||||||
| Exercised | (3) | 0.89 | |||||||||||||||||||||
| Forfeited or expired | (905) | 2.27 | |||||||||||||||||||||
| Outstanding as of April 30, 2024 | 6,780 | 1.46 | 8.02 | 2,762 | |||||||||||||||||||
| Granted | 1,463 | 2.14 | |||||||||||||||||||||
| Exercised | (2,475) | 1.69 | |||||||||||||||||||||
| Forfeited or expired | (123) | 1.45 | |||||||||||||||||||||
| Outstanding as of December 31, 2024 | 5,645 | 1.54 | 7.90 | 59,780 | |||||||||||||||||||
| Granted | 2,051 | 7.58 | |||||||||||||||||||||
| Exercised | (2,723) | 1.29 | |||||||||||||||||||||
| Forfeited or expired | (272) | 2.41 | |||||||||||||||||||||
| Outstanding as of December 31, 2025 | 4,701 | 4.14 | 8.04 | 18,616 | |||||||||||||||||||
| Exercisable as of December 31, 2025 | 1,085 | $ | 1.63 | 5.52 | $ | 6,865 | |||||||||||||||||
| Shares (in thousands) | Weighted Average Grant-Date Fair Value Per Share | ||||||||||
| Unvested and outstanding as of April 30, 2023 | 781 | $ | 2.44 | ||||||||
| Granted | 299 | 1.06 | |||||||||
| Vested | (485) | 1.92 | |||||||||
| Forfeited | (420) | 2.09 | |||||||||
| Unvested and outstanding as of April 30, 2024 | 175 | 2.09 | |||||||||
| Granted | 3,073 | 2.58 | |||||||||
| Vested | (1,404) | 1.43 | |||||||||
| Forfeited | (300) | 1.14 | |||||||||
| Unvested and outstanding as of December 31, 2024 | 1,544 | $ | 3.84 | ||||||||
| Granted | 1,279 | 7.11 | |||||||||
| Vested | (352) | 7.19 | |||||||||
| Forfeited | (347) | 1.34 | |||||||||
| Unvested and outstanding as of December 31, 2025 | 2,124 | $ | 5.67 | ||||||||
| Year ended December 31, 2025 | Eight months ended December 31, 2024 | Year ended April 30, 2024 | |||||||||||||||
| Research and development | $ | 1,152 | $ | 240 | $ | 395 | |||||||||||
| Sales and marketing | 2,319 | 1,040 | 562 | ||||||||||||||
| General and administrative | 7,091 | 2,823 | 2,652 | ||||||||||||||
| Total | $ | 10,562 | $ | 4,103 | $ | 3,609 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Aug 8, 2024 | |
| 2023 | Jul 27, 2023 | |
| 2022 | Jul 27, 2022 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.