Red Cat Holdings Inc ( RCAT ) shares are surging Wednesday after the company announced an expansion of its multi-domain Family of Systems to maritime platforms. Red Cat ( RCAT ) is due to report earnings after the bell. Here’s what you need to know.

What Happened: Red Cat ( RCAT ) introduced a new line of unmanned surface vessels, marking the company’s official entry into the maritime autonomy market.

Red Cat ( RCAT ) said it aims to be a provider of comprehensive, interoperable unmanned systems for air, land and sea operations and highlighted its existing partnership with Ocean Power Technologies, which is focused on integrating the company’s aerial drones with autonomous maritime platforms.

Red Cat ( RCAT ) said it decided to introduce its own line of kinetic-capable Unmanned Surface Vessels (USVs) in direct response to rising geopolitical tensions and a shift in U.S. defense priorities.

“This is a pivotal moment for Red Cat ( RCAT ) as we evolve from an aerial-first drone company into a true multi-domain defense provider. This expansion into maritime platforms opens significant opportunities in a fast-growing and urgently needed defense sector,” said Jeff Thompson, CEO of Red Cat ( RCAT ).

Red Cat ( RCAT ) noted that its USV technology already has more than 10,000 hours of operating time in live combat missions. The company plans to start production of a multi-role craft developed for maritime operations in the third quarter, which will offer larger payload capabilities, extended endurance and more firepower.

Red Cat ( RCAT ) is scheduled to report first-quarter financial results after the market close on Wednesday. The company is expected to report a loss of 10 cents per share and revenue of $2.4 million, according to estimates from Benzinga Pro.

RCAT Price Action: Red Cat ( RCAT ) shares were up 5.49% at $6.73 at the time of publication Wednesday, according to Benzinga Pro.

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