To The Moon

$Red Cat Holdings Inc.(RCAT)$

Red Cat Holdings (RCAT) and Palantir Technologies (PLTR) have joined forces to revolutionize autonomous drone operations in modern warfare. Their partnership integrates Palantir's Visual Navigation software (VNav) into Red Cat's Black Widow drones, enhancing navigation in GPS-denied environments. This collaboration leverages Palantir's advanced AI software and Warp Speed manufacturing OS to provide accurate navigation using onboard satellite imagery, independent of GPS or radio signals.

*Key Highlights:*

- *Strategic Partnership*: RCAT and PLTR aim to revolutionize autonomous small unmanned aerial systems (sUAS) for modern warfare.

- *VNav Technology*: Uses computer vision and satellite imagery for navigation, ensuring operational efficacy in electronic warfare (EW) environments.

- *Black Widow Drone*: Part of the U.S. Army's Short Range Reconnaissance Program, compact and equipped with electro-optical infrared cameras.

- *Benefits*:

- *Satellite Imagery Integration*: Accurate navigation without long-range drift.

- *Edge Runtime*: VNav algorithms run offline onboard the drone.

- *Improved Situational Awareness*: Enhances warfighter capabilities in contested environments.

*Impact on RCAT Share Price:*

RCAT's stock price is currently $16.06, with analysts predicting an 18.31% upside to $19.00. The partnership is expected to drive revenue growth, with estimated revenues of $80-$120 million in 2025. The company's strong financial foundation and growth prospects are contributing factors to the predicted upside.

*Quotes from Executives:*

- "Equipped with Palantir's visual navigation and artificial intelligence, the Black Widow will be among the most capable drones ever fielded by the Department of Defense," said Jeff Thompson, Red Cat CEO.

- "Arming Red Cat drones with Palantir's Visual Navigation... will provide unprecedented capability for the battlefield," said Aki Jain, Palantir's CTO & President, US Government.

*Additional Developments:*

- The Black Widow drone has demonstrated reliable navigation in GPS-denied environments, with VNav achieving a mean positional error of approximately 7 meters over a 2.7-kilometer route.

- Red Cat's partnership with Palantir is expected to open up new revenue streams and growth opportunities, particularly in the defense sector.

- The company's focus on developing advanced drone technology and AI-powered solutions positions it for long-term success in the rapidly evolving defense industry.

*Market Potential:*

The collaboration targets the growing demand for advanced drone technology in defense and national security. The global drone market is expected to reach $43.8 billion by 2025, driven by increasing adoption in various industries, including defense, agriculture, and construction.

*Risks and Challenges:*

- Limited capital remains a risk for RCAT, but the company's current stock weakness may present a buying opportunity.

- The defense industry is highly competitive, and RCAT faces competition from established players and new entrants.

- Regulatory challenges and changes in government policies could impact the company's growth prospects.

Red Cat Holdings' partnership with Palantir Technologies has the potential to revolutionize autonomous drone operations in modern warfare. The integration of VNav technology into the Black Widow drone enhances navigation capabilities and provides a competitive edge in the defense sector. With estimated revenues of $80-$120 million in 2025, RCAT is poised for significant growth and is an attractive investment opportunity for those looking to capitalize on the growing demand for advanced drone technology.

I have been cashing out in different stages of my 100lots (bought at $8.50 ). I used the SELL "Call & Put"-- Options Strategy. Now, awaiting to accumulate again as it dip. I still have lots of faith in Rcat.

It's not a financial advise, but just sharing my little experiences, and wishing all Tiger & Tigeress friends " Huat Big Big" as we ride the volatile 2026. Wishing all a Happy & Prosperous New Year.