I was doing research on something else and came across this article speaking briefly about Red Cat's acquisition of Rotor Riot.  For those that don't know, these blokes are basically wanting a slice of the FAA's remote ID pie.  And I don't know I'd say it's for the good of the hobby ... considering their website is just their OTC stock wtf lol.

(OTC or over-the-counter refers to so called penny stocks or low priced securities that are so low, they are not traded through traditional broker channels but "over the counter" ... basically crap stocks.)

If it seems like I am being cynical about this venture in general and this acquisition in particular, I am.  Here are some keepers from this article ...

Quote:Red Cat notes that from 2018 to 2019, Rotor Riot’s revenue grew approximately 44 percent year-over-year. Red Cat adds that its acquisition of Rotor Riot will provide the necessary resources and combined expertise to facilitate more growth for both companies.

O rly?  Cos one data point does a trend make?  Lawls.  And I'm going to guess that 17-18 and 19-20 wudn't too good.  LOL.  And as for the evident "synergies" (as we used to call them on Wall Street, yes, I am from there) is a load of purple Le Drib doodoo.  How does a combination of a what's basically a youtube video maker and a block chain tech wannabe startup desperately looking for a feasible application (like all block chain startups, frankly) supposed to create this "growth for both companies"?  You gonna block chain Le Drib's eye shadow to make sure it's legit?  BAHAAAAHA

Quote:Rotor Riot is not only a leading provider of FPV and drone racing hardware, but the company is also a trusted resource and deeply embedded in the global FPV community.

No comment.  Just wanted to read it aloud again LOL.

Quote:2019 was a banner year for Rotor Riot. Not only did the company experience substantial growth in its revenue, but Rotor Riot also worked closely with DJI—whom entered into the FPV space last year with a new system to get more people into the hobby— to create content that demonstrates the new system’s capabilities. The companies plan to work together moving forward to support each other’s efforts.

It's all coming together now.  To bolster the acquisition valuation RR desperately needed something more than just their one year of actual sales growth (LOL) ... enter DJI.  I will bet you my bottom 2 dollars that it was only with the DJI deal that they were able to add a "DJI FPV" line to their revenue forecast model boosting that valuation considerably.  Of course it's all B.S. but it looks damn good to otherwise ignorant investors.  Well played.

Quote:On Dec. 29, 2019, Rotor Riot Team Pilot Alex Vanover won the Drone Racing League World Championships.

LOL that has absolutely nothing to do with anything.  I wonder if Alex was like "hey put in that I won DRL man just do it!"  lollllll

Oh what a funny industry we are in.  

And just to add some more to all the drama which is related to your topic of Red Cat and Rotor Riot, Race Day Quads recently took out a lawsuit against Red Cat for the sum of $70k which is apparently money that was owed to them by Rotor Riot when RDQ and Rotor Riot parted company. Red Cat now being the effective owner of Rotor Riot means they are liable for that debt.

LOL what a mess. I hope RDQ recovers. I wouldn't be so put off by this if what the drivel being spewed as "investment rationale" actually held an ounce of water. Really, this is all straight out of the "How To Scam Investors" handbook - chapter 1.

And in all honesty, I feel bad for Drew / Le Drib and any other RR folks that bought into this false narrative. I suspect they were woo'ed with promises of stock options and golden parachutes. Oh man this will not end well for them.

I guess you already saw the other following threads on here relating to Red Cat? I wouldn't trust that company or Jeff Thompson as far as I could throw them.

https://intofpv.com/t-red-cat-announces-...rotor-riot

https://intofpv.com/t-rotor-riot-acquired-by-redcat

Yea I have I was trying to find it earlier although I didn't know there were two. I'll check em both out.

@ronin, wonder how well the "golden" parachute works 

(09-Sep-2020, 01:54 PM)iFly4rotors Wrote: @ronin, wonder how well the "golden" parachute works 

I hope the parachute is registered with the FAA and stores it's flight data on a blockchain.

I don't see any evidence of excess cynicism in your post ronin, quite the opposite in fact.

As for RR (and Chad Kapper in particular as the power behind it) being "trustworthy", pull the other one, it's got bells on it!

If all that Red Cat is currently hawking is buzzword bingo, (blockchain and digital currencies), I guess they've got some less than cautious investors involved seeing as Jonathan Read managed to pay himself close on $700,000 in 2018. (From https://www.salary.com/tools/executive-c...e-salaries)
In a similar vein, I'm immediately suspicious of any company which has a structure like that revealed for Red Cat:

Red Cat Holdings Inc (Based in Puerto Rico) -> TimefireVR Inc., doing business as TeraForge (based in Arizona).

Are we going to see RR episodes telling us all what a wonderful idea remote ID is?

 

If it looks like and smells like a bunch of shysters out to make a quick buck, then that's probably exactly what it is.

A little more googling reveals "redcatpropware.com" with the following statement found on a press release site:

"About Red Cat Propware

Founded in 2016, Red Cat is a leading provider of open source drone software solutions, utilizing the open source drone community and pilots. Red Cat offers support, training and custom drone applications. Red Cat is headquartered in Humcao, Puerto Rico. For more information, visit http://www.redcatpropware.com."

"A leading provider of open source...." Where? I don't find anything open source created by them. As far as I know, their "send us your flight logs" thing was never actually published as open source or did anything useful.

Their current "form 10K" statements sum up quite clearly how they are burning investor funds without any real product or service to sell. They made a loss of $1,601,931 for the financial year April 2019 to April 2020 compared to a loss of $751,332 in the previous year.

As far as I can tell, their business plan is:

"get lots of investment"
"make lots of public noise"
"crash and burn once people start asking too many questions"
Profit!!

(09-Sep-2020, 02:50 PM)Banelle Wrote: I hope the parachute is registered with the FAA and stores it's flight data on a blockchain.

BAHAHAHAHAHA oh that was so good.

(09-Sep-2020, 04:29 PM)unseen Wrote: If all that Red Cat is currently hawking is buzzword bingo, (blockchain and digital currencies), I guess they've got some less than cautious investors ...

This. But I would want to add, investors are not looking for "real." They are looking for "narrative" ... the story. Stories sell, facts do not. I learned that on day one in that industry.

(09-Sep-2020, 04:29 PM)unseen Wrote: Red Cat Holdings Inc (Based in Puerto Rico) -> TimefireVR Inc., doing business as TeraForge (based in Arizona).

Nice find!! I'm going to guess if you go a level deeper in the rabbit hole you'll find their bank based in the Caymans lolllll.

(09-Sep-2020, 04:29 PM)unseen Wrote: Are we going to see RR episodes telling us all what a wonderful idea remote ID is?

They won't have to ...

Since RR is Red Cat, they and DJI can make a deal to incorporate their tech. Under pressure from an administration that bans friggin tik tok cos the Chinese are listening (LAWLS), DJI will take whatever deal
Red Cat wants lest they loose the most lucrative drone market, or any market for that matter, second to their own country. They will have no choice but to incorporate Red Cat block chain tracking tech into every single DJI drone out there. For over a year and still going strong, RR has been pimping DJI FPV like it's the last hooker in Vegas. By the point all is said and done, I'm guessing over 75% of a continually growing FPV market will be wearing the moth goggles all flying Air Units equipped with Red Cat tracking.

Insert evil villain laugh here.

(09-Sep-2020, 04:29 PM)unseen Wrote: If it looks like and smells like a bunch of shysters out to make a quick buck, then that's probably exactly what it is.

Yup.

P.S. So you see why Fat Shark's moronic handling of the only other viable HD FPV system out there pisses me off to no end.

(09-Sep-2020, 05:50 PM)the.ronin Wrote: Since RR is Red Cat, they and DJI can make a deal to incorporate their tech.  Under pressure from an administration that bans friggin tik tok cos the Chinese are listening (LAWLS), DJI will take whatever deal
Red Cat wants lest they loose the most lucrative drone market, or any market for that matter, second to their own country.  They will have no choice but to incorporate Red Cat block chain tracking tech into every single DJI drone out there.  For over a year and still going strong, RR has been pimping DJI FPV like it's the last hooker in Vegas.  By the point all is said and done, I'm guessing over 75% of a continually growing FPV market will be wearing the moth goggles all flying Air Units equipped with Red Cat tracking.

I'm not convinced that DJI is prepared to bend over and take it to that kind of degree, just to sell their products in the USA.

I also very much doubt Red Cat's ability to actually deliver anything useful and functional. Let's face it, blockchain technology brings absolutely nothing to the table for a tracking system. As a technology, blockchains are very useful for proving ownership of an asset as it is essentially all about being able to record a transaction between two or more parties in a way which cannot later be refuted. Tracking a drone is not a transaction and does not have more than one party.

As what is being hawked by Red Cat is irrelevant and unlikely to ever result in anything of value, it's hard to see why DJI would bother paying it any attention, much less be prepared to integrate with this vapourware.

Chinese companies are much better at playing the long game than any western company and I'm sure DJI is prepared to bide its time until a certain uncouth orange moron is no longer running the USA. Once that happens, many will be re-evaluating the situation, so I don't think it's wise to draw any conclusions based on today's reality.

With respect to Red Cat's shady ownership structure, it's interesting to note the connection to Arizona. Those with longer memories will remember that Tim Sweet and rs2k's GPL breaking HelioRC company was based in Arizona. They folded owing lots of money and it wouldn't surprise me at all if these two crooks fit into this picture somewhere.

The only people who will benefit from Red Cat taking over Rotor Riot are probably Chad Kapper and the guys behind Red Cat. The pilots are likely to have been paid in worthless shares and will see the promise of those shares turn into dust before their eyes. I just hope they're smart enough to get out before they get completely screwed.

Lot of great observations there unseen but this one I think was the Cracker Jacks box surprise for me ...

(11-Sep-2020, 10:58 AM)unseen Wrote: ... Let's face it, blockchain technology brings absolutely nothing to the table for a tracking system. As a technology, blockchains are very useful for proving ownership of an asset as it is essentially all about being able to record a transaction between two or more parties in a way which cannot later be refuted. Tracking a drone is not a transaction and does not have more than one party ...

LOLLLL dude that is so true bahahahaha. I did not stop to think about it. I wonder if this goon dahs even realize it LOLOLOL

(11-Sep-2020, 04:44 PM)the.ronin Wrote: ...  I wonder if this goon dahs even realize it ...

If they don't, then they are even more stupid than they look.

When I see any new product or service offering which incorporates the word "blockchain" when there is no use for it in what's being offered, I know instantly that I'm looking at something which is essentially a scam designed to rip off people with more money than sense.