In the news release, Siyata Mobile Announces Second Quarter Financial Results, issued 15-Aug-2024 by Siyata Mobile Inc. over PR Newswire, we are advised by the company that the section Key financial highlights for the three months ended June 30, 2024:, first bullet point, should read “Revenues were $1.9 million compared to $2.7 million for the three months ended June 30, 2023.” rather than “Revenues were $1.6 million compared to $2.7 million for the three months ended June 30, 2023.” In addition the second bullet point of the same section should read “Gross profit of $0.2 million, or 10.4% of revenue, compared to $0.8 million, or 29.7% of revenue…” rather than “Gross profit of ($144,000), or -8.9% of revenue, compared to $804,000, or 29.7% of revenue…” as originally issued inadvertently. The complete, corrected release follows:
Siyata Mobile Announces Second Quarter Financial Results
Management to Host Conference Call at 8:30 a.m. ET on Friday, August 16
VANCOUVER, BC, Aug. 15, 2024 /CNW/ — Siyata Mobile Inc. (Nasdaq: SYTA) (“Siyata” or the “Company”), a global developer and vendor of Push-to-Talk over Cellular (PoC) handsets and accessories, today announced its financial results for the three months ended June 30, 2024.
Marc Seelenfreund, CEO of Siyata, said, “Second quarter revenue growth was tempered in large part due to the timing of the delivery of customer orders. However, we have a backlog of more than $7 million of confirmed orders, which gives us strong visibility into the second half of 2024. As such, we expect the third quarter will be a break-out quarter with high double digit year-over-year growth as the delivery of orders accelerates. We have achieved ‘stocked’ status for our SD7 handsets with four of the largest North American cellular carriers and continue to tap into new vertical markets reinforcing a growth trajectory that extends into 2025 and beyond.”
Key financial highlights for the three months ended June 30, 2024:
Revenues were $1.9 million compared to $2.7 million for the three months ended June 30, 2023.
Gross profit of $0.2 million, or 10.4% of revenue, compared to $0.8 million, or 29.7% of revenue, in the same period last year, primarily due to a one-time heavily discounted transaction to an international reseller which we believe will positively impact revenue in second half of 2024.
Net loss was $12.9 million as compared to a net loss of $2.3 million in the same period in the prior year, primarily due to a non cash recognition of the differences between fair value of capital raises compared to cash received resulting in a $6.7 million additional loss, as well as a $1.0 million loss due to transaction costs incurred for the financings and $2.0 million of marketing costs on investor awareness of our Company.
Adjusted EBITDA was ($3.8 million), versus ($2.0 million) in the prior year.
Liquidity and Capital Resources
As of June 30, 2024, the Company had a cash balance of $2.7 million compared to $0.9 million as of December 31, 2023.
During the second quarter, the company closed two public offerings of common shares and/or pre-funded warrants to purchase common shares for gross proceeds of approximately $10 million in aggregate.
Conference Call Details
The Company will host a conference call at 8:30 a.m. ET on Friday, August 16, 2024 to discuss its second quarter 2024 financial results.
Date: Friday, August 16, 2024
Time: 8:30 a.m. Eastern Time/5:30 a.m. Pacific Time
North America dial-in number: 888-506-0062
International toll-free dial-in number: 973-528-0011
Access Code: 922573
A replay will be available until August 30, 2024. To access the replay, dial +1 (877) 481-4010 or +1 (919) 882-2331. When prompted, enter Passcode 51033.
The call will also be available over the Internet and accessible at: https://www.webcaster4.com/Webcast/Page/2988/51033
About Siyata Mobile
Siyata Mobile Inc. is a B2B global developer and vendor of next-generation Push-To-Talk over Cellular handsets and accessories. Its portfolio of rugged PTT handsets and accessories enables first responders and enterprise workers to instantly communicate over a nationwide cellular network of choice, to increase situational awareness and save lives. Police, fire, and ambulance organizations as well as schools, utilities, security companies, hospitals, waste management companies, resorts and many other organizations use Siyata PTT handsets and accessories today.
In support of our Push-to-Talk handsets and accessories, Siyata also offers enterprise-grade In-Vehicle solutions and Cellular Booster systems enabling our customers to communicate effectively when they are in their vehicles, and even in areas where the cellular signal is weak.
Siyata sells its portfolio through leading North American cellular carriers, and through international cellular carriers and distributors.
Siyata’s common shares trade on the Nasdaq under the symbol “SYTA”.
Visit www.siyata.net and unidencellular.com to learn more.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Siyata’s current expectations, they are subject to various risks and uncertainties and actual results, performance, or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Siyata’s filings with the Securities and Exchange Commission (“SEC”), and in any subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites and social media have been provided as a convenience, and the information contained on such websites or social media is not incorporated by reference into this press release.
— Tables Follow —
Siyata Mobile Inc.
Condensed Consolidated Statements of Financial Position
(Expressed in US dollars)
USD
USD
June 30,
2024
December 31,
2023
Assets
Current
Cash
2,653,226
898,771
Trade And Other Receivables
1,508,799
1,181,257
Prepaid Expenses
2,244,232
29,673
Inventory
2,299,647
3,544,519
Advance To Suppliers
891,144
1,048,227
9,597,048
6,702,447
Long Term Receivable
142,904
147,100
Investment in Securities
1,000,000
–
Right Of Use Assets
500,849
630,793
Equipment
157,022
175,335
Intangible Assets
7,785,176
7,856,730
Total Assets
19,182,999
15,512,405
Liabilities And Shareholders’ Equity
Current
Loans to Financial Institutions
619,068
89,298
Sale of future receipts
2,152,375
1,467,899
Accounts Payable and Accrued Liabilities
4,087,199
3,449,103
Deferred Revenue
3,182
2,025
Short Term Lease Liability
243,214
254,668
Warrant Liability and Preferred Shares
10,755,482
156,433
17,860,520
5,419,426
Long Term Lease Liability
284,393
385,639
284,393
385,639
Total Liabilities
18,144,913
5,805,065
Shareholders’ Equity
Share Capital
92,565,727
85,714,727
Reserves
14,845,086
14,644,200
Accumulated Other Comprehensive Loss
98,870
98,870
Deficit
(106,471,597)
(90,750,457)
1,038,086
9,707,340
Total Liabilities And Shareholders’ Equity
19,182,999
15,512,405
Siyata Mobile Inc.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in US dollars)
For the three and six months ended June 30, 2024 and 2023
Three Months Ended
Six Months Ended
June 30,
2024
June 30,
2023
June 30,
2024
June 30,
2023
Revenue
$
1,890,968
$
2,710,717
$
4,248,847
$
4,513,354
Cost Of Sales
(1,694,154)
(1,906,227)
(3,188,616)
(3,212,347)
Gross Profit
196,814
804,490
1,060,231
1,301,007
10.4
%
29.7
%
25.0
%
28.8
%
Expenses
Amortization And Depreciation
433,129
453,499
837,787
855,139
Development Expenses
–
31,465
35,000
85,450
Selling And Marketing
954,388
987,803
2,102,406
1,991,168
Equity promotion and marketing
2,000,000
250,000
2,150,000
591,200
General And Administrative
1,033,301
1,503,382
2,071,853
2,554,612
Bad Debts (Recovered)
–
10,148
18,858
10,148
Share-Based Payments
83,762
260,705
200,886
571,533
Total Operating Expenses
4,504,580
3,497,002
7,416,790
6,659,250
Net Operating Loss
(4,307,766)
(2,692,512)
(6,356,559)
(5,358,243)
Other Expenses
Finance Expense
942,283
41,251
1,722,039
75,349
Loss on issuance
6,129,282
–
6,129,282
–
Loss on extinguishment of financial liability
601,163
–
601,163
–
Foreign Exchange
(1,706)
(78,762)
(10,651)
(78,599)
Change In Fair Value of Warrant Liability
(31,986)
(321,384)
(54,570)
1,856,623
Transaction Costs
977,318
–
977,318
–
Total Other Expenses
8,616,354
(358,895)
9,364,581
1,853,373
Net Loss for The Period
(12,924,120)
(2,333,617)
(15,721,140)
(7,211,616)
Comprehensive Loss for The Period
(12,924,120)
(2,333,617)
(15,721,140)
(7,211,616)
Weighted average shares (after 18 to 1 reverse split)
108,922
5,417
70,307
4,691
Basic and diluted loss per share
(118.65)
(430.78)
(223.61)
(1,537.33)
Reconciliation to Adjusted EBITDA
(Expressed in US dollars)
For the three and six months ended June 30, 2024 and 2023
Three Months Ended
Six Months Ended
June 30,
2024
June 30,
2023
June 30,
2024
June 30,
2023
Net operating loss
(4,307,766)
(2,692,512)
(6,356,559)
(5,358,243)
addback
Amortization And Depreciation
433,129
453,499
837,787
855,139
Share-Based Payments
83,762
260,705
200,886
571,533
Adjusted EBITDA
(3,790,875)
(1,978,308)
(5,317,886)
(3,931,571)
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SOURCE Siyata Mobile Inc.
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