Red Cat Holdings, Inc..
RCAT.US | Manufacture of computers and peripheral equipment
Red Cat Holdings, Inc. is a company operating in the drone technology sector. It focuses on providing products, services, and solutions to the drone industry. While specific details about their activities can vary, they generally include the development, manufacturing, and sale of drone-related hard...Show More
Better Health for All
0
No evidence available to assess Red Cat Holdings, Inc. on Better Health for All.
Fair Money & Economic Opportunity
0
No evidence available to assess Red Cat Holdings, Inc. on Fair Money & Economic Opportunity.
Fair Pay & Worker Respect
0
No specific, concrete data points were found in the provided articles for any of the KPIs under the 'Fair Pay & Worker Respect' value. Information regarding living wage coverage, CEO to median pay ratio, collective bargaining share, safety incident rate, pay equity ratio, worker engagement score, turnover rate, labor violation incidents, insecure contract share, or health insurance coverage is not available.
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Fair Trade & Ethical Sourcing
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No evidence available to assess Red Cat Holdings, Inc. on Fair Trade & Ethical Sourcing.
Honest & Fair Business
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Insufficient evidence to determine a value score for Red Cat Holdings, Inc. regarding Honest & Fair Business. No articles or relevant information found. A neutral score of 0 is assigned.
Materiality Analysis: Company Summary (75-100 words): Red Cat Holdings, Inc. operates in the drone industry, providing software solutions, reselling drones and parts, and offering UAV technology to military, government, and commercial sectors. Their activities include cloud-based analytics, storage, and VTOL drone solutions. The company is based in Puerto Rico. Strategic changes or expansions are not explicitly mentioned in the provided information, but their focus spans software, hardware, and services within the unmanned aerial vehicle market.
Peer Comparison (50-75 words): Benchmarking Red Cat against peers requires considering drone manufacturers, software providers, and defense contractors. For "Honest & Fair Business," performance depends on transparency, regulatory compliance, and ethical conduct. Without specific peer data, it's difficult to assess whether Red Cat performs above, below, or at industry standard.
Materiality Assessment (1-2 clear sentences): The business model has medium materiality to "Honest & Fair Business" because while not inherently unethical, the nature of government contracts and technology sales necessitates high integrity and transparency. Potential for misuse of drone technology and government contracts increases the importance of ethical business practices.
Detailed Rationale (150-200 words): Red Cat's involvement in military, government, and commercial sectors necessitates strong ethical conduct. Government contracts demand strict compliance and transparency to prevent corruption or unfair practices. The potential for misuse of drone technology (e.g., surveillance) requires careful consideration of ethical implications. Software solutions and data analytics also raise privacy and security concerns, requiring robust data governance and transparent disclosure practices. Reselling drones and parts requires ensuring product safety and compliance with regulations. While the company's activities are not inherently unethical, the industry context and potential impact on stakeholders make "Honest & Fair Business" a material consideration. The absence of specific information on whistle-blower policies, transparency indices, or regulatory fines limits a more precise assessment.
Value Interaction Notes (if applicable, 25-50 words): Red Cat's work with military and government entities may create tensions between "Honest & Fair Business" and "Social Impact & Human Rights," depending on the end-use of their technology.
Scoring Boundary Flags (if applicable, 25-50 words): Scores indicating high ethical failures (e.g., multiple regulatory fines, financial restatements) would be illogical unless there is evidence of significant misconduct. Scores above 8 may be difficult to justify without strong evidence of transparency and ethical leadership.
Kind to Animals
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No evidence available to assess Red Cat Holdings, Inc. on Kind to Animals.
No War, No Weapons
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No evidence available to assess Red Cat Holdings, Inc. on No War, No Weapons.
Planet-Friendly Business
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No evidence available to assess Red Cat Holdings, Inc. on Planet-Friendly Business.
Respect for Cultures & Communities
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The provided articles offer limited information directly relevant to Red Cat Holdings' respect for cultures and communities as defined by the rubric. The company has two formal partnerships with veteran support organizations, Darby Warrior Support and Still Serving Veterans.
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While these are community groups, they do not align with the specific focus on cultural preservation, heritage, or indigenous peoples as outlined in the value definition. Therefore, for KPIs related to these specific types of partnerships, the score defaults to 'not applicable' (0) due to a lack of direct evidence. Over $13,000 has been raised through Sky Devil wine sales for these veteran organizations, but this is an absolute amount, not a percentage of company revenue, and is not specifically directed to cultural heritage.
2
No specific data was found regarding cultural appropriation incidents, cultural impact assessment protocols, local employment ratios, grievance mechanisms for community concerns, or any other quantitative metrics outlined in the rubric for this value.
Safe & Smart Tech
-50
Red Cat Holdings faces multiple class-action lawsuits (Olsen v. Red Cat Holdings, Inc., case 25-cv-05427) alleging violations of the Securities Exchange Act of 1934, specifically misstatements about production capacity and the value of a U.S. Army contract.
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These lawsuits cover a class period from March 2022 to January 2025.
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The company engages SpiderOak for a comprehensive security assessment of its Black Widow drone, including vulnerability analysis and penetration testing.
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It also reviews its security controls and conducts security testing to address information security vulnerabilities.
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However, no specific patching timeframes for critical vulnerabilities are provided, nor is the scope and frequency of security testing detailed beyond specific product assessments. There is no evidence of a formal bug bounty program or specific response times to external vulnerability reports.
5
Zero Waste & Sustainable Products
-50
Red Cat Holdings, Inc. has not incurred any waste disposal violations in the past three years. The company is subject to environmental laws and governmental regulations concerning hazardous chemicals in third-party components, including the RoHS and WEEE Directives.
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Lithium-ion batteries used in products like the Black Widow™ and FANG™ are classified as hazardous waste under the U.S. Resource Conservation and Recovery Act (RCRA).
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The company is required to conduct immediate supply chain audits for dual-use components to maintain RoHS compliance for non-military sales.
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Greencat, an internal initiative, aims to reduce its hardware footprint by embracing recycling, reuse, and renewable energy options, supporting a circular, low-waste model.
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Greencat also shares Green Tips fortnightly in the company chat to educate on sustainability.
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