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
News Market Reaction
On the day this news was published, SYTA declined 16.32%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Management to Host Conference Call at 8:30 a.m. ET on Friday, August 16
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
Key financial highlights for the three months ended June 30, 2024:
- Revenues were
$1.6 million $2.7 million - Gross profit of (
$144,000 8.9% of revenue, compared to$804,000 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 $2.3 million $6.7 million $1.0 million $2.0 million - Adjusted EBITDA was (
$3.8 million $2.0 million
Liquidity and Capital Resources
As of June 30, 2024, the Company had a cash balance of
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
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
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, | December 31, | |||||||
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, | June 30, | June 30, | June 30, | |||||||||||||
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, | June 30, | June 30, | June 30, | |||||||||||||
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
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