Lantronix Solution Powers U.S. Army-Approved Teal Drones, a Red Cat Holdings Co., Unlocking Secure Edge AI Growth Opportunity

Lantronix Enables TAA- and NDAA-Compliant Edge AI Solution, Supporting Sensitive U.S. Government Missions and Expanding Long-Term Defense Market Positioning

IRVINE, Calif., Aug. 18, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader in compute and connectivity IoT solutions powering Edge AI applications, today announced that its TAA- and NDAA-compliant solution was selected by Teal Drones, a Red Cat Holdings Inc. (NASDAQ: RCAT) company, for production of its Black Widow™ drones under the U.S. Army’s Short-Range Reconnaissance (SRR) Program. Lantronix has already initiated production shipments, providing early revenue visibility and underscoring Lantronix’s role as a trusted technology partner for mission‑critical defense applications.

The Lantronix solution, based on the Qualcomm® Dragonwing™ QRB5165 processor, delivers advanced Edge AI processing while meeting stringent U.S. security requirements, enabling full TAA and NDAA compliance for deployment in sensitive Department of Defense (DoD) missions. The combination of AI performance and compliance creates a sustainable advantage for Lantronix in the rapidly expanding defense and autonomous systems market.

As part of a select group of Blue UAS-approved small Unmanned Aerial Systems (sUAS) vendors, Teal Drones must meet rigorous cybersecurity, operational and safety standards for DoD use. Lantronix’s compliant solution enables Teal to meet these requirements, positioning its Black Widow drones for deployment in frontline missions.

“Black Widow drones are redefining what’s possible for small unmanned systems, giving today’s warfighters real-time intelligence and the operational edge they need on the modern battlefield,” said Jeff Thompson, CEO of Red Cat. “Lantronix’s solution enables us to meet the U.S. Army’s rigorous TAA and NDAA compliance standards under the SRR Program — a level of assurance few providers can match.”

With the global drone market projected to reach $57.8 billion by 2030 (Drone Industry Insights’ 2025–2030 Global Drone Market Report), Lantronix’s presence in the secure defense and commercial drone segment creates multi-year, high-margin growth opportunities.

“Lantronix has established itself as a leader in the Edge AI market, delivering innovative, compliance‑driven solutions for the growing drone sector,” said Saleel Awsare, CEO and president of Lantronix. “Our collaboration with Teal Drones underscores our ability to bring secure, high‑performance products to market at scale, creating long‑term opportunities with leading global brands.”

Lantronix solutions and Engineering Services combine embedded compute technology, compliance expertise and flexible software support to accelerate customer product development. This scalable platform approach not only enables rapid time‑to‑market for Teal Drones but also positions Lantronix to support future defense and industrial IoT programs requiring TAA and NDAA compliance.

Learn more about Lantronix’s Engineering Services, SOM solutions and additional Drone Applications at Lantronix.com.

About Lantronix

Lantronix Inc. (Nasdaq: LTRX) is a global leader in Edge AI and Industrial IoT solutions, delivering intelligent computing, secure connectivity, and remote management for mission-critical applications. Serving high-growth markets, including smart cities, enterprise IT, and commercial and defense unmanned systems, Lantronix enables customers to optimize operations and accelerate digital transformation. Its comprehensive portfolio of hardware, software, and services powers applications from secure video surveillance and intelligent utility infrastructure to resilient out-of-band network management. By bringing intelligence to the network edge, Lantronix helps organizations achieve efficiency, security, and a competitive edge in today’s AI-driven world.

For more information, visit the Lantronix website.

About Red Cat Holdings Inc.

Red Cat (Nasdaq: RCAT) is a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security. Through its wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat develops American-made hardware and software that support military, government, and public safety operations across air, land, and sea. Its Family of Systems, led by Black Widow™, delivers unmatched tactical capabilities in small unmanned aircraft systems (sUAS). Expanding into the maritime domain through Blue OPS, Inc., Red Cat is also innovating in uncrewed surface vessels (USVs) and autonomous underwater vehicles (AUVs), delivering integrated platforms designed to enhance safety and multi-domain mission effectiveness. Learn more at www.redcat.red.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements related to Lantronix products or leadership team. These forward-looking statements are based on our current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic or other outbreaks, wars and recent tensions in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report, as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. In addition, actual results may differ as a result of additional risks and uncertainties about which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

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