Siyata Mobile Announces Second Quarter Financial Results

Rhea-AI Summary

Siyata Mobile Inc. (Nasdaq: SYTA) announced its financial results for Q2 2024. Despite tempered revenue growth, the company reports a $7 million backlog of confirmed orders, projecting a strong second half of 2024. Key highlights include:

- Q2 revenues of $1.6 million, down from $2.7 million in Q2 2023
- Gross profit of ($144,000), or -8.9% of revenue
- Net loss of $12.9 million, largely due to non-cash items
- Adjusted EBITDA of ($3.8 million)
- Cash balance of $2.7 million as of June 30, 2024

The company achieved 'stocked' status for SD7 handsets with four major North American carriers and expects high double-digit year-over-year growth in Q3 2024.

Positive

• $7 million backlog of confirmed orders
• Achieved 'stocked' status for SD7 handsets with four major North American carriers
• Expecting high double-digit year-over-year growth in Q3 2024
• Raised $10 million through public offerings in Q2

Negative

• Q2 revenues decreased to $1.6 million from $2.7 million year-over-year
• Gross profit turned negative at ($144,000) or -8.9% of revenue
• Net loss increased to $12.9 million from $2.3 million year-over-year
• Adjusted EBITDA worsened to ($3.8 million) from ($2.0 million) year-over-year

Insights

Financial Analyst

Siyata Mobile's Q2 results paint a concerning picture. Revenue declined 40.7% year-over-year to $1.6 million, with gross profit turning negative. The $12.9 million net loss, largely due to non-cash items, is alarming. While management cites a $7 million order backlog, the company's cash burn rate is worrisome. The $10 million raised through public offerings provides a temporary cushion, but sustainable profitability remains elusive. The heavily discounted transaction to boost future sales is a risky move that hurt margins. Investors should closely monitor Q3 results to see if the promised "break-out quarter" materializes.

Tech Expert

Siyata's Push-to-Talk over Cellular (PoC) technology shows promise, but market traction seems slow. Achieving "stocked status" with major carriers is positive, yet it hasn't translated to revenue growth. The company's focus on new vertical markets could diversify its customer base, but execution is key. The SD7 handset needs to demonstrate clear advantages over competitors to justify its market position. The tech landscape is rapidly evolving and Siyata must innovate to stay relevant. The high marketing costs for investor awareness raise questions about product market fit and organic growth potential.

Market Research Analyst

Siyata's market positioning is precarious. The PoC market is niche but growing, estimated at $4.9 billion globally in 2023. However, Siyata's 0.13% market share (based on annualized Q2 revenue) is minuscule. The company's bet on carrier relationships and vertical market expansion is logical but faces stiff competition from established players. The $7 million backlog provides some optimism, but consistent quarter-over-quarter growth is important for long-term viability. The high investor awareness costs suggest challenges in organic market penetration. Siyata needs to clearly articulate its unique value proposition to stand out in this competitive landscape.

Management to Host Conference Call at 8:30 a.m. ET on Friday, August 16

VANCOUVER, BC, Aug. 15, 2024 /PRNewswire/ -- 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 $1.6 million compared to $2.7 million for the three months ended June 30, 2023.
• Gross profit of ($144,000), or -8.9% of revenue, compared to $804,000, 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.

FAQ

What were Siyata Mobile's (SYTA) Q2 2024 revenue and net loss?

Siyata Mobile (SYTA) reported Q2 2024 revenues of $1.6 million and a net loss of $12.9 million.

How much is Siyata Mobile's (SYTA) order backlog as of Q2 2024?

Siyata Mobile (SYTA) reported a backlog of more than $7 million in confirmed orders as of Q2 2024.

What is Siyata Mobile's (SYTA) cash balance as of June 30, 2024?

Siyata Mobile (SYTA) reported a cash balance of $2.7 million as of June 30, 2024.

How much did Siyata Mobile (SYTA) raise through public offerings in Q2 2024?

Siyata Mobile (SYTA) raised approximately $10 million in gross proceeds through public offerings in Q2 2024.