Financial Performance - Revenues for 2024 were $11,629,572, a 41.3% increase from $8,233,301 in 2023, primarily driven by a 73.6% increase in rugged device sales [555]. - Gross margin decreased to $2,142,407 (18.4% of sales) in 2024 from $2,657,929 (32.3% of sales) in 2023, a reduction of $515,522 [555]. - Net loss for 2024 was $25,270,714, compared to a net loss of $12,931,794 in 2023, indicating a significant increase in losses [573]. - Adjusted EBITDA for 2024 was negative $14,759,624, worsening from negative $7,836,798 in 2023, a decrease of $6,422,826 [574]. - Cash balance as of December 31, 2024, was $181,730, down from a deficit of $898,771 in 2023, with an accumulated deficit of $116,021,171 [575]. - Net cash flows used in operating activities for 2024 were negative $15,083,655, an increase in cash used of $6,740,895 compared to 2023 [576]. - Net cash flows from financing activities increased to $17,724,129 in 2024 from $9,602,586 in 2023, an increase of $8,121,543 [579]. Shareholder Transactions - For the year ended December 31, 2024, the total common share transactions amounted to 784,564 shares, generating proceeds of $19,201,346 [589]. - As of January 1, 2025, the Company had an opening balance of 787,733 common shares valued at $104,916,071, with a total of 3,486,519 common shares outstanding at the date of the MD&A [591]. - The Company issued 2,643,554 common shares under the Equity Line of credit from January 1, 2025, generating net proceeds of $6,139,092 [591]. - The Company completed a registered offering for an equity line of credit of up to $18,000,000 on January 14, 2025, representing approximately 2,739,296 common shares [591]. - A total of 1,690,000 common shares have been issued under the put agreement, generating net proceeds of $4,062,372 [641]. - The Company redeemed 163 Class C preferred shares for cash totaling $163,000 on February 2025 [641]. Customer Concentration - Approximately 64% of the Company's revenue for the year ended December 31, 2024, was attributable to sales transactions with a single customer, up from 26% in 2023 [609]. Expenses and Costs - Development expenses rose to $625,023 in 2024 from $578,356 in 2023, an increase of $46,667 due to higher intangible costs [557]. - The Company has recognized a total compensation of $1,659,264 for key management personnel for the year ended December 31, 2024 [634]. - The Company assesses impairment of non-financial assets at each reporting date, evaluating conditions that may lead to asset impairment [632]. Mergers and Acquisitions - The merger agreement with Core Gaming Inc. is expected to close in Q2 2025, aimed at enhancing market presence [559]. - A merger agreement was entered into with Core Gaming, Inc., where Core Gaming shareholders will own approximately 90% of the merged entity [644]. - The merger will involve an exchange ratio calculated based on $160,000,000 divided by the volume-weighted average closing price of the Company's common shares [645]. - The Company acquired Clear RF LLC for a total purchase price of $700,000, satisfied by approximately $389,970 in Common Shares and $310,030 in cash [623]. Agreements and Licensing - The Uniden Agreement provides the Company with exclusive rights to use the "Uniden®" trademark, with minimum annual payments of $200,000 in 2023-2025, increasing to $300,000 from 2029-2031 [626]. - The Company has entered into two patent licensing agreements with Via Licensing Corporation, with no minimum royalty fees payable [627]. - The Wilson Agreement requires the Company to pay a royalty of 4.5% of sales of booster products, payable quarterly [628]. Risk Management - Approximately 8% and 16% of the Company's expenses are denominated in CAD$ and NIS, respectively, exposing it to foreign currency exchange risks [799]. - Changes of 5% and 10% in the CAD$/US$ exchange rate would have impacted operating expenses by approximately 0.5% and 1%, respectively, in 2024 [799]. - The Company partially hedges foreign currency exchange rate risk by purchasing in US$ from Asian suppliers, with the majority of sales also in US$ [800]. - The Company currently has no off-balance sheet arrangements [647]. Liquidity and Cash Management - The Company ensures sufficient liquidity to meet its obligations, maintaining cash for operational needs for a period of 90 days [615]. - The Company utilizes activity-based costing to monitor cash flow requirements and optimize cash return on investments [615]. - The fair values of the Company's cash and receivables approximate their carrying values, indicating low credit risk associated with cash balances [607].
Siyata Mobile(SYTA) - 2024 Q4 - Annual Report