New Horizon Aircraft (HOVR) investor relations material

Executive summary

• Significant progress on the hybrid-electric Cavorite X7, with prototype assembly targeted for 2026 and initial testing in early 2027, marking a milestone-driven approach and transparency as a newly public company.

• Focused on developing the Cavorite X7 for all-weather, IFR operations, targeting both civilian and military markets, and not pursuing air taxi operations but an OEM model for global operators.

• Strategic partnerships with Pratt & Whitney and McLaren Applied, and collaboration with ZeroAvia to explore hydrogen hybridization, enhance propulsion and systems integration.

• Awarded a $10.5 million non-dilutive INSAT grant for sustainable, all-weather eVTOL development.

• Engineering team doubled year-over-year, with plans to double again by end of 2026 to support transition from demonstration to full-scale prototype.

Financial highlights

• Ended the quarter with over $24 million in cash, the strongest liquidity position to date, supporting operational goals through 2026.

• Raised $19.1 million through equity sales and $3.3 million from warrant exercises in the six months, with $31.8 million available for future equity sales.

• Total operating expenses for the quarter were $5.1 million, up from $3.3 million year-over-year, mainly due to increased R&D and staff for prototype development.

• Net loss of $8.7 million for the quarter and $19.6 million for the six months ended November 30, 2025, compared to net income in the prior year due to one-time items.

• Shareholders’ equity rose to $14.5 million from $2.6 million over the six-month period.

Outlook and guidance

• Targeting completion of the full-scale X7 prototype by end of 2026, with initial ground testing in early 2027.

• Certification work underway, leveraging expertise from Certification Center Canada and ongoing engagement with Transport Canada.

• Sufficient capital runway to achieve development and testing milestones through 2026, but additional financing will be required for long-term objectives.

• Operating costs expected to gradually scale up, potentially doubling by this time next year as development and certification ramp.

• Focused on disciplined execution, advancing certification, and preparing for commercial operations before 2030.