What caused HOVR's operating losses in recent quarters?

New Horizon Aircraft Ltd. (HOVR) has experienced operating losses in recent quarters primarily due to increased operating expenses and ongoing investments in research and development (R&D) for its hybrid electric Vertical Take-Off and Landing (eVTOL) aircraft, the Cavorite X7. Here are the key factors contributing to HOVR's operating losses:

1. Increased Operating Expenses: The company's operating expenses have risen significantly, primarily driven by higher R&D and general administrative costs. For instance, the R&D expenses increased to $427,000 from $219,000, and general and administrative expenses rose to $2,847,000 from $605,000. These increases reflect the company's investment in developing new technologies and expanding its operations.
2. Legal and Growth-Related Costs: The company has incurred additional costs related to legal and accounting matters, which are common during periods of growth and development. These costs are necessary but can negatively impact short-term profitability.
3. Flight Testing and Engineering Work: The increased labor for flight testing and engineering work has also contributed to the rise in R&D expenses. This is a critical phase for the company as it tests and refines its aircraft design, which is essential for meeting regulatory requirements and ensuring safety.
4. Capital Investments: HOVR has been actively investing in capital expenditures, which includes the purchase of new equipment and facilities to support its growing operations. These investments are crucial for long-term growth but require significant upfront costs.

In summary, HOVR's operating losses are primarily a result of strategic investments in R&D, increased operating expenses, and legal and growth-related costs. These expenses are necessary for the company's long-term success as it develops and prepares to market its innovative eVTOL aircraft.