New Horizon Aircraft Ltd. (NASDAQ: HOVR) reported its financial and operational results for the first quarter of fiscal 2027, ended August 31, 2026, disclosing more than $70 million in cash on hand, which management said is expected to fund operations for at least the next 24 months.

The Canadian aerospace company said its full-scale Cavorite X7 hybrid-electric vertical takeoff and landing (VTOL) demonstrator aircraft is on track to be completed by the first quarter of calendar 2027, followed by ground, taxi, and flight testing. The company said it increased research and development spending relative to general and administrative costs during the quarter to advance the program.

Horizon Aircraft said it has held meetings with Transport Canada to design and build the full-scale demonstrator in a manner intended to support a future certification process.

Strategic partners supporting the Cavorite X7 development include BETA Technologies, Marshall Aerospace, RAMPF Composite Solutions, and North Aircraft Industries.

The company said it has signed letters of intent totaling more than $1 billion in potential aircraft sales, representing up to 200 aircraft purchases and five aircraft leases. Letters of intent are non-binding and do not guarantee future revenue.

"Strategic capital allocation and consistent financial discipline are keeping us on track to complete the full-scale demonstrator around the end of the first quarter of calendar 2027, followed by ground testing and then flight testing," said CEO Brandon Robinson.