Core Points - LeddarTech Holdings Inc. has received a determination letter from Nasdaq indicating that its securities will be suspended from trading on June 24, 2025, and subsequently delisted due to concerns related to its filing under the Bankruptcy and Insolvency Act (BIA) [1][2][3] - The company filed under the BIA on June 18, 2025, leading to the resignation of its board of directors [4] - LeddarTech is recognized for its AI-powered software solutions in advanced driver assistance systems (ADAS) and autonomous driving (AD), with over 190 patent applications [5][6] Company Overview - Founded in 2007 and headquartered in Quebec City, LeddarTech specializes in AI-based low-level sensor fusion and perception software for ADAS and autonomous driving applications [5] - The company's technology aims to enhance vehicle awareness, making global mobility safer and more efficient [6] - LeddarTech's software is designed for OEMs and Tier 1-2 suppliers, facilitating the implementation of automotive and off-road vehicle ADAS solutions [5]

Core Viewpoint - LeddarTech Holdings Inc. intends to file for bankruptcy under the Bankruptcy and Insolvency Act (Canada) after failing to find a suitable acquirer or raise sufficient capital [1][2]. Company Overview - LeddarTech is an AI-powered software company specializing in advanced driver assistance systems (ADAS) and autonomous driving (AD) [1][5]. - Founded in 2007 and headquartered in Quebec City, the company has additional R&D centers in Montreal and Tel Aviv, Israel [5]. - The company develops AI-based low-level sensor fusion and perception software solutions for ADAS, autonomous driving, and parking applications [5]. Financial Situation - The board of directors decided on bankruptcy after a strategic review did not yield a suitable acquirer or commercial partner, and the company received a notice of default under its bridge financing [2]. - The company does not expect to resume active operations and warns that investors may receive little to no value from the bankruptcy proceedings [3]. Governance Changes - All members of the board of directors will resign effective upon the bankruptcy assignment [3]. Market Impact - Trading of the company's common shares and warrants on Nasdaq is expected to be halted due to the bankruptcy proceedings, with a potential delisting from Nasdaq anticipated [4]. Innovations and Patents - LeddarTech holds over 190 patent applications, with 112 granted, focusing on enhancing ADAS, AD, and parking capabilities [6]. - The company aims to become the most widely adopted sensor fusion and perception software solution to improve global mobility safety and efficiency [6].

Core Points - LeddarTech Holdings Inc. has laid off most of its employees due to the cessation of discussions with a significant potential commercial counterpart and its current financial position [1] - The board of directors is reviewing alternatives for the company, which may include a sale of the business, restructuring, or potential bankruptcy proceedings [2] - The company does not expect to resume active operations and warns investors of significant risks regarding the value of securities in any bankruptcy process [3] Company Overview - LeddarTech is an AI-powered software company founded in 2007, specializing in advanced driver assistance systems (ADAS) and autonomous driving (AD) [4] - The company has over 190 patent applications, with 112 granted, focusing on enhancing ADAS and AD capabilities [5] - LeddarTech aims to become the most widely adopted sensor fusion and perception software solution in the automotive industry [5]

Company Overview - LeddarTech Holdings Inc. is an automotive software company specializing in AI-powered low-level sensor fusion and perception software technology, known as LeddarVision™ [1][6] - The company was founded in 2007 and is headquartered in Quebec City, with additional R&D centers in Montreal and Tel Aviv, Israel [6] Financial Developments - LeddarTech has entered into a Sixth Amending Agreement for a bridge financing offer, which includes a new bridge to equity term loan from FS Investment Management amounting to up to US$2,000,000 [1] - The company is relying on exemptions from formal valuation and minority shareholder approval requirements for this related-party transaction, as the transaction's fair market value does not exceed 25% of the company's market capitalization [4] Workforce Updates - The company announced the return to work of certain employees affected by a previous workforce reduction, starting June 4, 2025, to support ongoing commercial activities [5] - There is a plan to progressively call back more furloughed employees, although the timing and certainty of this decision remain unclear [5] Innovation and Technology - LeddarTech holds over 190 patent applications, with 112 granted, focusing on enhancing ADAS (Advanced Driver Assistance Systems), autonomous driving, and parking capabilities [7] - The company's technology aims to improve vehicle awareness and safety, contributing to the deployment of ADAS and autonomous driving applications [6][8]

Core Viewpoint - LeddarTech Holdings Inc. is currently in discussions with lenders regarding financing options but has not yet reached an agreement for additional funding or relief from existing covenants [1][2] Group 1: Financial Situation - The company is actively negotiating with Desjardins and Bridge Lenders for additional financing but has not secured any agreements [1] - To conserve cash and extend negotiation time, LeddarTech announced temporary layoffs affecting approximately 138 employees, which is about 95% of its total workforce [2] - The company is exploring various alternatives, including restructuring obligations, selling the business or assets, and seeking creditor protection under the Companies' Credit Arrangement Act [2] Group 2: Company Overview - LeddarTech, founded in 2007 and headquartered in Quebec City, specializes in AI-based software solutions for advanced driver assistance systems (ADAS) and autonomous driving (AD) [3] - The company has developed over 190 patent applications, with 112 granted, focusing on enhancing ADAS and AD capabilities [4] - LeddarTech aims to be the most widely adopted sensor fusion and perception software solution, contributing to safer and more efficient global mobility [4]

Core Viewpoint - LeddarTech Holdings Inc. (LDTC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for LeddarTech for the fiscal year ending September 2025 is projected at -$0.87 per share, reflecting a 29.8% change from the previous year's reported number [9]. - Over the past three months, the Zacks Consensus Estimate for LeddarTech has increased by 13.9%, indicating a trend of rising earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is crucial for individual investors to make informed decisions [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown an impressive track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. Market Implications - The upgrade to Zacks Rank 2 places LeddarTech in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11]. - Rising earnings estimates and the consequent rating upgrade indicate an improvement in LeddarTech's underlying business, which is expected to drive the stock price higher [6].

Core Insights - LeddarTech Holdings Inc. has launched a new generation simulation platform, LeddarSim™, aimed at bridging the gap between virtual testing and real-world deployment in the ADAS and AD sectors [1][3] - The platform utilizes groundbreaking multi-modal neural reconstruction to create realistic driving scenarios, enhancing the training, testing, and validation of perception models [1][3] Company Overview - Founded in 2007, LeddarTech is a global software company headquartered in Quebec City, with additional R&D centers in Montreal and Tel Aviv [4] - The company specializes in AI-driven low-level sensor fusion and perception software solutions for ADAS, autonomous driving, and parking applications [4] - LeddarTech holds over 190 patents, with 112 granted, focusing on enhancing ADAS, AD, and parking functionalities [4] Product Benefits - LeddarSim is designed to accelerate testing and validation cycles, enabling OEMs and Tier 1 suppliers to bring next-generation ADAS and autonomous driving solutions to market faster while improving performance and safety reliability [3][4] - The platform can reduce data labeling costs by 90% and significantly cut non-recurring engineering (NRE) expenses without sacrificing accuracy [4] - LeddarSim supports multi-modal sensor data simulation, optimizing and validating perception systems from cameras, radar, and LiDAR [4] Market Potential - The demand for simulation tools is expected to grow, with the industry projected to exceed $4.6 billion by 2035, highlighting the timely introduction of LeddarSim to address challenges in data processing and validation [3][4]

Company Performance - LeddarTech Holdings Inc. reported a quarterly loss of $0.27 per share, which aligns with the Zacks Consensus Estimate, an improvement from a loss of $0.45 per share a year ago [1] - The company's revenues for the quarter ended March 2025 were $0.17 million, missing the Zacks Consensus Estimate by 81.56%, and a significant decline from $1.38 million in the same quarter last year [2] - Over the last four quarters, LeddarTech has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2][3] Stock Performance - LeddarTech shares have declined approximately 50.1% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $1.1 million, and for the current fiscal year, it is -$1.01 on revenues of $3.3 million [7] Industry Outlook - The Internet - Software industry, to which LeddarTech belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LeddarTech's stock performance [5][6]

[Interim Condensed Consolidated Financial Statements](index=1&type=section&id=Interim%20condensed%20consolidated%20financial%20statements%20of%20LeddarTech%20Holdings%20Inc.) This section presents LeddarTech's unaudited interim financial statements, including the balance sheet, changes in equity, income statement, and cash flows, along with detailed explanatory notes [Consolidated Statements of Financial Position](index=3&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20financial%20position) LeddarTech's financial position deteriorated by March 31, 2025, with total assets increasing to **$23.0 million** while liabilities surged to **$134.9 million**, worsening the shareholders' deficiency to **($111.9 million)** Consolidated Statement of Financial Position (Unaudited) | | March 31, 2025 ($) | September 30, 2024 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 14,275,913 | 10,058,565 | | **Total Assets** | **22,970,573** | **18,927,222** | | **Total Current Liabilities** | 71,766,077 | 25,929,538 | | **Total Liabilities** | **134,886,899** | **107,561,916** | | **Total Shareholders' Deficiency** | **(111,916,326)** | **(88,634,694)** | - Key changes from September 30, 2024 to March 31, 2025 include: - Cash increased from **$5.3 million** to **$9.2 million**[5](index=5&type=chunk) - A new contract liability of **$11.5 million** was recorded[5](index=5&type=chunk) - The current portion of credit facilities increased from zero to **$29.4 million**[5](index=5&type=chunk) [Consolidated Statements of Changes in Shareholders' Deficiency](index=4&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20changes%20in%20shareholders%27%20deficiency) Shareholders' deficiency increased to **($111.9 million)** for the six months ended March 31, 2025, primarily due to a **$42.4 million net loss** partially offset by **$16.6 million in SEPA capital** Changes in Shareholders' Deficiency (Six Months Ended March 31, 2025) | Description | Amount ($) | | :--- | :--- | | **Balance as of Sep 30, 2024** | **(88,634,694)** | | Standby Equity Purchase Agreement (SEPA) | 16,609,780 | | Stock-based compensation | 2,712,350 | | Net loss and comprehensive loss | (42,430,248) | | Other changes | (142,814) | | **Balance as of Mar 31, 2025** | **(111,916,326)** | [Consolidated Statements of Loss and Comprehensive Loss](index=6&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20loss%20and%20comprehensive%20loss) The company reported a **net loss of $42.4 million** for the six months ended March 31, 2025, a significant reduction from the prior year's **$77.9 million loss** primarily due to the absence of a **$59.1 million listing expense** Statement of Loss Highlights (Six Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Revenues | 290,792 | 174,101 | | Loss from operations | (26,566,811) | (76,483,797) | | Listing expense | — | 59,139,572 | | Finance costs, net | 16,457,396 | 2,318,678 | | **Net loss** | **(42,430,248)** | **(77,863,292)** | Loss Per Share (Six Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net loss per common share, basic and diluted | (1.23) | (4.81) | | Weighted average common shares outstanding | 34,508,393 | 16,110,444 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20interim%20condensed%20consolidated%20statements%20of%20cash%20flows) Operating activities used **$14.8 million** in cash for the six months ended March 31, 2025, offset by **$18.9 million** from financing, resulting in a **$3.9 million net cash increase** Cash Flow Summary (Six Months Ended March 31) | Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash flows from operating activities | (14,807,373) | (32,271,562) | | Net cash flows from investing activities | (165,133) | (4,885,976) | | Net cash flows from financing activities | 18,915,053 | 46,575,384 | | **Net increase in cash** | **3,942,547** | **9,266,754** | | **Cash, end of period** | **9,211,631** | **14,322,794** | - Financing activities in the six months to March 31, 2025, were driven by proceeds from the Standby Equity Purchase Agreement (SEPA) of **$16.0 million** and bridge loan proceeds of **$3.8 million**[13](index=13&type=chunk) [Notes to the Financial Statements](index=9&type=section&id=Notes%20to%20the%20unaudited%20interim%20condensed%20consolidated%20financial%20statements) The notes provide detailed explanations of significant accounting policies, business combinations, debt instruments, and capital structure, highlighting key financial events and risks [Note 1: Reporting Entity, Nature of Operations and Going Concern Uncertainty](index=9&type=section&id=Note%201.%20Reporting%20entity%2C%20nature%20of%20operations%20and%20going%20concern%20uncertainty) The company faces substantial going concern uncertainty due to an **accumulated deficit of $685.8 million**, a **$42.4 million net loss**, and a recent debt covenant breach - The company has an accumulated deficit of **$685,755,318** as of March 31, 2025, and incurred a net loss of **$42,430,248** for the six months then ended[18](index=18&type=chunk) - Management's cash flow projections indicate insufficient resources for the upcoming year, raising substantial doubt about the company's ability to continue as a going concern[20](index=20&type=chunk) - On May 2, 2025, the company breached a credit facility covenant, giving the lender the right to demand immediate repayment, and is negotiating for a waiver or amendment[21](index=21&type=chunk)[22](index=22&type=chunk) [Note 3: Acquisition of Prospector Capital Corp.](index=12&type=section&id=Note%203.%20Acquisition%20of%20Prospector%20Capital%20Corp.) The December 2023 reverse asset acquisition of Prospector Capital Corp. resulted in a **non-cash listing expense of $59.1 million** due to the fair value of shares issued exceeding net assets acquired Reverse Asset Acquisition Reconciliation | | Amount ($) | | :--- | :--- | | Fair value of consideration transferred | 65,372,812 | | Fair value of net assets acquired | 6,233,240 | | **Listing expense** | **59,139,572** | [Note 4: Discontinued Operations](index=13&type=section&id=Note%204.%20Discontinued%20Operations) Modules operations ceased in September 2024, reporting **$1.15 million in revenue** and **$497,340 net income** for the six months ended March 31, 2025 Discontinued Operations Performance (Six Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Revenue | 1,154,670 | 3,388,142 | | Net Income | 497,340 | 866,129 | [Note 5: Bridge Loans and Long-term Debt](index=14&type=section&id=Note%205.%20Bridge%20Loans%20and%20Long-term%20debt) Total debt reached **$105.4 million** as of March 31, 2025, with the company facing a critical May 16, 2025, deadline to produce a refinancing plan to avoid default Total Debt as of March 31, 2025 | Debt Instrument | Amount ($) | | :--- | :--- | | Convertible loan | 48,213,422 | | Credit facility | 29,361,336 | | Term loan | 12,704,969 | | Bridge loan | 15,086,759 | | **Total debt** | **105,366,486** | - The company amended its Bridge Loan and Credit Facility, extending the maturity date to May 23, 2025, contingent on completing specific financing transactions[55](index=55&type=chunk)[47](index=47&type=chunk) - Failure to produce a satisfactory refinancing plan by May 16, 2025, will constitute a liquidity event, potentially leading to default and acceleration of debt repayment[49](index=49&type=chunk)[56](index=56&type=chunk) [Note 8: Capital Stock](index=19&type=section&id=Note%208.%20Capital%20stock) Common shares outstanding increased to **37.6 million** by March 31, 2025, primarily from issuing **7.2 million SEPA shares** that raised **$16.6 million** - The company issued **7,195,222** common shares under the Standby Equity Purchase Agreement (SEPA), raising **$16,609,780** in capital[68](index=68&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - As of March 31, 2025, there were **37,613,792** common shares and **7,031,065** non-voting special shares outstanding[76](index=76&type=chunk) [Note 9: Stock-Based Compensation](index=22&type=section&id=Note%209.%20Stock-based%20compensation) Stock-based compensation expense totaled **$2.7 million** for the six months ended March 31, 2025, with **1.23 million new options granted** and the Equity Incentive Plan amended - Total stock-based compensation expense for the six months ended March 31, 2025, was **$2,712,350**[9](index=9&type=chunk) - The company granted **1,230,900** new stock options and had **2,639,500** options outstanding as of March 31, 2025[86](index=86&type=chunk) - The Equity Incentive Plan was amended in March 2025 to increase the share pool and add an evergreen provision for automatic annual increases[81](index=81&type=chunk) [Note 13: Strategic Collaboration with Texas Instruments](index=30&type=section&id=Note%2013.%20Strategic%20collaboration%20agreement%20and%20software%20license%20agreement) LeddarTech entered a strategic collaboration with Texas Instruments in December 2024, receiving **$8.0 million** in advance royalty payments recorded as a contract liability - The company entered into a strategic collaboration and software license agreement with Texas Instruments (TI) to develop an integrated ADAS platform[100](index=100&type=chunk) - TI agreed to pay **$9.89 million** in advance royalties, with **$8.0 million** received by January 7, 2025, and the remaining **$1.89 million** contingent on securing a client contract with an OEM[101](index=101&type=chunk) - The advance payments received from TI were recorded as a contract liability until the company fulfills its related obligations[102](index=102&type=chunk)

Core Insights - LeddarTech has launched LeddarSim™, a next-generation simulation platform aimed at bridging the gap between virtual testing and real-world deployment in advanced driver assistance systems (ADAS) and autonomous driving (AD) [1][2] Company Overview - LeddarTech is an AI-powered software company founded in 2007, headquartered in Quebec City, with additional R&D centers in Montreal and Tel Aviv, specializing in low-level sensor fusion and perception software solutions for ADAS and AD applications [5][6] - The company holds over 190 patent applications, with 112 granted, enhancing capabilities in ADAS, AD, and parking [6] Product Features and Benefits - LeddarSim utilizes multi-modality neural reconstruction to create sensor-accurate, real-time renderings of driving scenarios, significantly improving the fidelity of simulations [2][4] - The platform allows automotive OEMs and Tier 1 suppliers to accelerate testing and validation cycles, enabling faster market entry for next-generation ADAS and AD solutions [4][6] - LeddarSim offers a cost-effective solution, achieving a 10x reduction in data and annotation costs, while also minimizing non-recurring engineering expenses [6] - The platform supports simultaneous simulation of data from cameras, radar, and LiDAR, optimizing multi-sensor perception systems [6] Market Context - The demand for simulation tools in the automotive industry is expected to exceed $4.6 billion by 2035, indicating a significant growth opportunity for LeddarSim [4]