Siyata Mobile Announces First Quarter 2022 Financial Results

  • First quarter revenue negatively impacted due to the transition of the sales cycle from legacy products to new product lines
  • Subsequent to the end of the quarter, Siyata received a $2.2 million purchase order for a US Tier 1 wireless carrier for SD7, VK7 and various accessories

VANCOUVER, BC / ACCESSWIRE / May 16, 2022 / Siyata Mobile Inc. SYTA SYTAW))) (“Siyata“or the”Company“), a global provider of Push-to-Talk over Cellular (PoC) devices and cellular signal booster systems, announced its financial results for the three months ended March 31, 2022. Subsequent to the quarter, the company received a $2.2 million purchase order for a US Tier 1 wireless carrier. All amounts are in US dollars unless otherwise noted.

“During the first quarter, we strengthened the foundation for our North American launch of the SD7, our newest rugged push-to-talk device, and accompanying vehicle kit accessory, the VK7,” said Marc Seelenfreund, founder and CEO of Siyata. “The recent approval of a National Broadband Network for First Responders and certification of SD7, allowing first responders to leverage specialized capabilities designed to meet their needs, is a game-changer and should accelerate sales growth over the next few quarters, as evidenced by the $2.2 million purchase order we recently received for a US Tier 1 wireless carrier. We believe there is significant growth potential in the near and term for these product lines that have the potential to disrupt the $12.6 billion land mobile radio (LMR) industry and replace traditional two-way radios with next-generation devices.”

First Quarter 2022 Financial Highlights:

  • Revenues for the three months ended March 31, 2022 amounted to $832,974 compared to $4,031,975 for the three months ended March 31, 2021. This variance of $3,199,001 is mainly due to the transition of the selling legacy products to the new product line, where production was ramped up for the rugged SD7 handset.
  • Gross margin for the three months ended March 31, 2022 was $255,051 (30.6% of sales) compared to $1,740,091 43.2% of sales for the three months ended March 31, 2021, a variation of the gross margin in dollars of $1,485,040 mainly related to the sale of rugged and embedded cellular devices at lower margins compared to the sale of industrial boosters in the American market at slightly higher margins and due to the period of the previous year, one-time sale of boosters in the first quarter of 2021 at higher margins.
  • For the three-month fiscal year ended March 31, 2022, Adjusted EBITDA is negative ($2,629,373) versus negative ($291,346) for the prior year period, a difference of ($2,338,967) . Adjusted EBITDA is defined as net operating loss excluding amortization and stock-based compensation expense.
  • The Company recorded a net loss for the quarter ended March 31, 2022 of ($4,893,491) compared to a net loss of ($2,115,406) during the prior year period, a change of ($2,778,085). This negative variance is mainly explained by a decrease in gross margin of $1,485,040 and a change in the fair value of derivatives of $1,390,950.
  • As of March 31, 2022, the Company had a cash balance of $9,221,049 (December 31, 2021 – $1,619,742) and working capital of $11,058,203 (December 31, 2021 – negative 688,973 $). Cash consumed during the quarter largely relates to cash consumed for operations, a $4.0 million repayment of a $7.2 million senior secured convertible promissory note and fees associated with a previously announced $20 million underwritten public offering. In addition, the Company’s preparation to launch its new products resulted in a sequential increase: $1.0 million in inventory, a $0.6 million increase in advances to suppliers and a $0.8 million reduction in accounts payable.

Outlook

Siyata is building on a solid foundation, expanding its distribution partnerships, adding new key sales recruits and accelerating its rollout in North America. The recently announced certification and approval of Siyata’s SD7 rugged device is a major milestone that contributes to the company’s goal of disrupting the $12.6 billion LMR industry. Following the approval of this carrier, the Company received a $2.2 million purchase order for a US Tier 1 wireless carrier. The purchase order included SD7 devices and associated accessories as well as VK7 kits (Vehicle Kit 7), a one-of-a-kind, patent-pending car kit designed for an optimal in-vehicle experience for the user, similar to a traditional LMR. mobile device.

Rugged handsets | Siyata’s rugged handsets are for the approximately 47 million business and public sector workers in North America, including construction, transportation and logistics, manufacturing, energy and utilities, public safety and the federal government. Siyata’s Q4 2021 launch of the SD7 device in North America has expanded the company’s footprint in this product category. The company plans to launch the SD7 device in Europe in 2022.

Uniden® UV350 | Pent-up demand for this disruptive solution following pandemic-related delays has led to multiple active engagements with many customer trials resuming in 2022, which should result in robust growth for this product line over the next few months. next quarters.

Cell Boosters | The pandemic has helped fuel strong demand for Siyata boosters in 2020 and 2021. We believe this momentum will resume in 2022 with multiple programs with existing customers, extensive trials with new customers, and expanding opportunities in new areas. new vertical markets.

Selected financial information

Consolidated Statements of Losses and Comprehensive Income
(Expressed in US dollars)

For the three months ended March 31, 2022 and 2021

2022 2021

Revenues (note 25)

832 974 4,031,975

Cost of sales (Note 17)

(577,923 ) (2,291,884 )

Gross profit

255,051 1,740,091

EXPENSES

Amortization and depreciation (note 8)

124,505 321,017

Development costs (Note 8)

123,316

Sales and marketing (Note 18)

1,045,051 972 959

General and administrative (Note 19)

1,659,079 1,058,478

Impairment of inventories (Note 6)

64,336

Bad debts (recovered) (Note 5)

(7,358 )

Share-based payments (Note 16)

812 735 592 792

Total operating expenses

3,821,664 2,945,246

Net operating loss

(3,566,613 ) (1,205,155 )

OTHER EXPENSES

Finance charge (note 20)

26,987 390,861

Exchange

(90,659 ) 440 321

Change in fair value of convertible debenture (note 12)

2,680,457

Change in fair value of warrant liability (note 13)

(1,289,907 )

Transaction costs (Note 21)

79,069

Total other expenses

1,326,878 910 251

Net loss for the period

– 4,893,491 – 2,115,406

Other comprehensive income

Translation adjustment

(24,467 ) 67,415

Overall loss for the period

– 4,917,958 – 2,047,991

Weighted average shares

12,976,363 4,726,991

Basic and diluted loss per share

(0.38 ) (0.45 )

The accompanying notes form an integral part of these unaudited interim consolidated financial statements

Reconciliation with adjusted EBITDA

(Expressed in US dollars)

For the three months ended March 31, 2022 and 2021

2022 2021

Operating loss

(3,566,613 ) (1,205,155 )

Depreciation and amortization

124,505 321,017

EBITDA

(3,442,108 ) (884 138 )

Stock-based compensation expense

812 735 592 792

Adjusted EBITDA

(2,629,373 ) (291,346 )

About Siyata Mobile

Siyata Mobile Inc. is a global B2B provider of Push-To-Talk over Cellular (PoC) devices and next-generation cellular booster systems. Its portfolio of in-vehicle, rugged smartphones enables first responders and enterprise workers to communicate instantly, over a national cellular network of choice, to increase situational awareness and save lives.

Its portfolio of enterprise-grade and consumer-grade cellular booster systems enable first responders and enterprise workers to boost cellular signal in remote areas, inside buildings with weak signals, and in vehicles for the maximum cellular signal strength possible.

Siyata’s common stock trades on the Nasdaq under the symbol “SYTA” and its warrants under “SYTAW”.

Visit siyatamobile.com and unidencellular.com to learn more.

Investor Relations (US):

Dave Gentry, CEO
RedChip Companies
1-800 RED-CHIP (733-2447)
407-491-4499
[email protected]

Investor Relations (Canada):

Kin Communications
1-866-684-6730
[email protected]

Company Siyata Mobile:

Daniel Kim, Vice President of Corporate Development
Siyata Mobile Inc.
[email protected]

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 “aims”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will”, and expressions similar or variations of these words are intended to identify forward-looking statements. Because these statements address future events and are based on Siyata’s current expectations, they are subject to various risks and uncertainties, and the actual results, performance or achievements of Siyata could differ materially from those described or implied by the statements in this press release. The forward-looking statements contained or implied by this press release are subject to other risks and uncertainties, including those discussed under “Risk Factors” in Siyata’s filings with the Securities and Exchange Commission (” SEC”), and in all subsequent filings. with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to issue revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events. References and links to websites have been provided as a convenience, and information contained on such websites is not incorporated by reference in this press release.

THE SOURCE: Siyata Mobile, Inc.

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Casey J. Nelson