Financial Performance - Revenues for the year ended December 31, 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] - The net loss for the year ended December 31, 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, reflecting 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 were negative $15,083,655 in 2024, compared to negative $8,342,760 in 2023, a variance of $6,740,895[576] Expenses and Financial Obligations - The company experienced a significant increase in finance expenses, totaling $3,541,594 in 2024, up from $841,815 in 2023, an increase of $2,699,779[564] - Development expenses rose to $625,023 in 2024 from $578,356 in 2023, an increase of $46,667 due to higher intangible costs[557] - More than 74% of the Company's customers have been active for over four years, with an allowance for doubtful accounts of $36,973 recognized against these customers[611] - The Company ensures sufficient liquidity to meet its obligations, maintaining cash for operational needs for a period of 90 days[615] - The Company has recognized a total compensation of $1,659,264 for key management personnel for the year ended December 31, 2024[634] Shareholder and Equity Information - For the year ended December 31, 2024, a total of 784,564 common shares were transacted, resulting in 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 an increase to 3,486,519 common shares valued at $111,782,222 by the date of the MD&A[591] - The Company issued 2,160,000 common shares under the equity line of credit agreement, generating net proceeds of $4,493,326[590] - The Company completed a registered offering for an equity line of credit of up to $18,000,000, representing approximately 2,739,296 common shares[591] - The Company registered an amendment to its equity line of credit, increasing the maximum number of shares to be issued by 20%[637] - The Company issued 310,554 common shares from January 1, 2025, resulting in total net proceeds of $1,332,989 after share issuance costs[638] - 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] Strategic Initiatives and Partnerships - The company plans to leverage expanded partnerships and product offerings in North America to drive future growth[553] - The merger agreement with Core Gaming Inc. is expected to close in Q2 2025, indicating strategic market expansion[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 Purchaser'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] Licensing and Agreements - The Uniden Agreement provides the Corporation with exclusive rights to use the trademark "Uniden®" and requires minimum annual payments of $200,000 in 2023-2025, increasing to $300,000 from 2029-2031[626] - The Company has entered into two patent licensing agreements with Via Licensing Corporation, with no minimum royalty fees payable[627] - The Wilson Agreement requires a royalty payment of 4.5% of sales of booster products, payable quarterly[628] Risk Management and Currency Exposure - Approximately 8% and 16% of the Company's expenses are denominated in CAD$ and NIS, respectively, exposing it to foreign currency exchange risks[801] - 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[801] - The Company partially hedges foreign currency exchange rate risk by purchasing in US$ from Asian suppliers and conducting the majority of sales in US$[802] - The Company currently has no off-balance sheet arrangements[647] Asset Management - The Company assesses impairment of non-financial assets at each reporting date, evaluating conditions that may lead to asset impairment[632] - The Company uses activity-based costing to monitor cash flow requirements and optimize cash return on investments[615] - The average exercise price of outstanding stock options as of December 31, 2024, was $250,854.55, with 11 options remaining[597] - The Company granted 300,681 share purchase warrants during the year ended December 31, 2024, with 150 warrants outstanding at year-end[604] - The Company had 909 Class "C" preferred shares outstanding as of December 31, 2024, with a liability value of $1,069,413[593]
SIYATA MOBL.EQ.WARRT(SYTAW) - 2024 Q4 - Annual Report