New Horizon Aircraft Ltd.

What they do

New Horizon Aircraft designs and is building the Cavorite X7, a hybrid-electric 7-seat eVTOL aircraft that takes off and lands vertically (like a helicopter) but cruises like a fixed-wing airplane. The company uses patented fan-in-wing (HOVR Wing) technology with ducted fans concealed in the wings during forward flight. It has completed flight testing of a 50%-scale prototype and is building a full-scale demonstrator, with certification targeted before 2030. The company also plans to license its fan-in-wing technology to other OEMs.

Revenue drivers

• Cavorite X7 aircraft sales — Primary revenue source once certified; planned sales to third parties, air operators, lessors, individual consumers, and NATO military customers. No revenue reported to date.
• Technology licensing — Plans to license patented fan-in-wing and other core innovations to other OEMs; considered a potential source of significant profit, but no licensing agreements announced.
• Pre-revenue development stage — Company has not started commercial operations; no revenue is currently generated, and losses are expected until aircraft deliveries or licensing begin.

Recent performance

For fiscal 2024 (year ended February 29, 2024), the company reported a net loss of $8.6 million and operating cash flow of -$2.1 million. As of February 29, 2024, total assets were $6.8 million, total liabilities $23.0 million, and shareholder equity was -$16.1 million. In July 2026, the company announced it strengthened its balance sheet to $78.3 million in cash, providing more than 24 months of liquidity. The company continues to incur operating losses and expects expenses to rise significantly in fiscal 2027 as it scales development and certification.

Strategy

Management is prioritizing completion of the full-scale Cavorite X7 demonstrator, targeting initial testing in Q1 2027 and certification before 2030. It is building strategic manufacturing partnerships (e.g., RAMPF Composite Solutions for fuselage, North Aircraft Industries for wing, BETA Technologies for flight control computers). The company plans to scale headcount from 56 to over 100 by summer 2027, adding engineering and certification capabilities. It aims to commercialize with a hybrid-electric advantage over pure-electric competitors, enabling operation in austere locations without charging infrastructure. It also intends to manufacture aircraft and license its technology to other OEMs.

Risks

• Pre-revenue and recurring losses — No commercial sales yet; losses expected to continue until aircraft deliveries or licensing begin, and could be larger than anticipated.
• Certification uncertainty — Aircraft must receive Type Certification from Transport Canada Civil Aviation, with a target before 2030; there is no guarantee of meeting this timeline or obtaining certification at all.
• Significant capital needs — Expected expenses will increase materially in fiscal 2027 and beyond; despite $78.3 million cash, the company may need additional funding to complete certification and production.
• Market and technology risk — The regional air mobility market is immature; adoption depends on perceptions of safety, performance, cost, and environmental impact, and may face competition from ground and drone alternatives.

Outlook

Management expects key milestones ahead: continued subsystem integration, advancement of the full-scale prototype build, expansion of the engineering organization, and ongoing engagement with certification authorities and strategic suppliers. The company anticipates commercialization prior to 2030, with the first full-scale prototype beginning initial testing in Q1 2027. With $78.3 million cash, it expects more than 24 months of liquidity to cover full-scale demonstrator assembly and advance certification and manufacturing efforts. Headcount is planned to increase from 56 to over 100 by summer 2027.